dnap@dnapway
Chamath reveals that the real ROI of AI is just 0-2% for companies in the S&P 500
"The problem with enterprise revenue is that at some point, the person who's spending it has to see an ROI. I asked Fable, what is the lift of the S&P 500 earnings per share growth since 2024 from AI?"
"Fable answered, oh it's 50%. Then I looked through it and I said well no, you're including the money that NVIDIA makes from selling chips."
"I asked a different question; what was the EPS growth of the S&P 493? The answer was 9%. The overwhelming majority of that was from pricing power sitting on top of inflation, and then the other 3% was from buybacks."
"So the answer, as far as all publicly available data shows, was that the actual ROI was somewhere between zero and 2%."