BiggerPockets Money Podcast · Tuesday, September 15, 2026
Professor Aswath Damodaran of NYU discusses the valuation of the AI complex, emphasizing the need to differentiate between companies building the AI architecture and those aiming to profit from AI products and services. He estimates the infrastructure build-out alone is over two trillion dollars.
“So the debate about AI is what will come out of these factories? What are the products and services? What will people pay for them? And collectively is enough money to be made from those products and services to justify the two trillion plus in capex?”
“The revenues will have to be maybe eight, 10 trillion because if you think about the profits and the expenses produced, the revenues and the profits, and the tax on the profits, you're very quickly going to start to scale the latter up to 10 trillion.”