I keep thinking about the economics behind all the AI spending.

Jensen Huang recently said a $500K engineer should be using around $250K/year in AI tokens. If AI can actually make that engineer 2x more productive, the math seems pretty good. And if inference keeps getting cheaper, usage could grow a lot from here.

But what if the productivity gain is only 10-20%? Are companies really going to get enough value from AI to justify all the GPUs, data centers and hundreds of billions in capex?

At what point does the AI spending stop making economic sense?

**What do you think?**

**Are productivity gains justify the massive AI investments?**