Nikhil Kamath questions the AI boom: Are billions in spending translating into real business gains?

AI companies are getting massive investment, and the big question is whether that investment will deliver on the promise. Kamath's latest piece examines the gap between the technology's promise and its actual economic impact. AI is being sold as a technology that will transform business, change how we work, and create entirely new industries. As investment in AI infrastructure and AI companies continues to mount, the more pertinent question is who is paying for it and whether the benefits are materialising in the economy at large.

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Zerodha co-founder Nikhil Kamath raises these issues in his latest WTF is AI? episode, bringing together a number of tech leaders to consider whether the industry's growth is sustainable. The discussion goes well beyond the capabilities of AI to the business economics of the sector, looking at the money that is flowing into it and the revenues that the companies are making. For the businesses, the employees and for India's tech ambitions the question is whether AI can in fact deliver some real value.

AI spending vs revenue: what is worrying Nikhil Kamath?

During the discussion, Kamath cited around $700 billion in committed AI spending this year, against approximately $100 billion in enterprise AI revenue. He questioned whether the numbers add up, highlighting the gap between committed capital and revenue generated. These figures were cited by Kamath during the episode.

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The panel is made up of Akshay Kothari (Co-founder & COO, Notion), Vijay Krishnan (Founder & CTO, Turing), Anna Goldie and Azalia Mirhoseini (Co-founders of Ricursive Intelligence). The discussion covers AI chips, model training, applications and the economics of AI service delivery.

The issue isn't just whether AI works. It's whether the companies and the customers will be prepared to pay sufficient money for what it can do in order for the investment to be worthwhile.

Will AI change jobs, productivity and India's opportunity?

For employees, one of the most immediate concerns is whether AI will replace existing work or allow smaller teams to do more. The discussion also raises questions about how AI-driven productivity gains could translate into wider economic benefits.

The conversation then moves on to India and what India needs to be building in order to capture a bigger slice of the AI opportunity. That's not just about the tech start-ups. That's about the broader implications for future jobs, for business investment and for homegrown technology.