How Big Is the AI Economy?

The AI economy is expanding at an unprecedented rate, with AI companies generating $110 billion in revenue over the past year and reaching an annualized run rate of $175 billion. This growth, which is three times faster than previous IT platform shifts, is validated by realized revenue rather than mere speculation. A significant compute supercycle is driving demand, evidenced by a projected doubling of the global semiconductor market to $1.5 trillion by 2026 and a surge in U.S. electricity generation. While capital expenditure remains high, revenue is increasingly covering depreciation, and high-intensity AI adopters are seeing 92% higher revenue growth compared to non-adopters. Despite falling unit costs for tokens, energy monetization per gigawatt is rising, signaling a shift toward sustainable, production-scale AI deployment that is fundamentally reshaping the broader economic landscape.