Wednesday, January 28, 2026

Has AI Use Reached an Inflection Point, or Not?

As always, we might well disagree about the latest statistics on AI usage.


The proportion of U.S. employees who report using artificial intelligence daily rose from 10 percent to 12 percent in the fourth quarter of 2025, a Gallup survey finds. 


Frequent use, defined as using AI at work at least a few times a week, has also inched up three percentage points to 26 percent.


source: Gallup 


The percentage of those who use AI at work at least a few times a year was flat in the fourth quarter of 2025.  


And nearly half of U.S. workers (49 percent) report that they “never” use AI in their role.


As always, that data will be interpreted in several possible and contradictory ways:

  • Not every job role requires AI

  • Some use cases and verticals use AI heavily

  • Adoption has reached an inflection point

  • Adoption is quite fast

  • Adoption is slowing


source: Gallup 


Some of us might argue that AI is at an adoption rate inflection point, the historical precedent being that adoption shifts to a higher gear once about 10 percent of consumers use any particular technology. 


Also, Amara's Law suggests the impact is likely to be less than we expect in the short term (as in, “now” or “today”), while long-term impact will be greater than we anticipate.


Amara’s Law suggests that we tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.


Source


“Most people overestimate what they can achieve in a year and underestimate what they can achieve in ten years” is a quote whose provenance is unknown, though some attribute it to Standord computer scientist Roy Amara. Some people call it the “Gate’s Law.”


Some products or technologies (and AI might be among them) can take decades to reach mass adoption, especially if we start tracking adoption from the time a new technology is discovered, rather than “starting the clock” when “commercialization” begins. 


The “next big thing” will have first been talked about roughly 30 years ago, says technologist Greg Satell. IBM coined the term machine learning in 1959, for example, and machine learning is only now in widespread use. 


Alexander Fleming discovered penicillin in 1928, it didn’t arrive on the market until 1945, nearly 20 years later.


Electricity did not have a measurable impact on the economy until the early 1920s, 40 years after Edison’s plant, it can be argued.


It wasn’t until the late 1990’s, or about 30 years after 1968, that computers had a measurable effect on the US economy, many would also note.


The point is that it is way too early to discern the actual productivity gains AI will eventually deliver. We will expect more, and be disappointed, over the short term. But we will underestimate impact over the longer term. 


And there is good reason to believe that the uptake in adoption has only just been reached.


Tuesday, January 27, 2026

The Best Argument for Sustainable Neocloud Role in the AI Ecosystem

Perhaps the “best” argument for a permanent role for neocloud service providers is the relevance of enterprise private cloud inference services, which arguably cost less than public cloud providers


While hyperscalers (AWS, Azure, Google Cloud) dominate general-purpose computing and model training, neoclouds (CoreWeave, Nebius, Hut 8 and others) have some advantages for inference operations, at least for the moment. 


How sustainable that advantage might be is the question. But the logic for long-term relevance generally rests on a few key arguments. 


Enterprises increasingly are wary of sending sensitive proprietary data (financial records, healthcare data, IP) to public multi-tenant clouds for inference.So neocloud providers can offer private services that , satisfy strict compliance (GDPR, HIPAA) and data sovereignty requirements that public clouds arguably struggle to guarantee.


The former bitcoin miners are essentially energy arbitrage firms. They have spent years securing the world's cheapest power contracts and building high-density cooling infrastructure. So they might have an advantage supporting services using high-performance graphics processing unitss (Nvidia H100s/Blackwell) at a lower marginal cost than hyperscalers.


Some believe neoclouds can undercut hyperscaler GPU hourly rates by 30 percent to 50 percent.


Neocloud providers also offer advantages in portability. Since neoclouds typically provide raw compute (Kubernetes/bare metal), enterprises can build portable inference engines. If a company wants to move their Llama 3 or Mistral inference workload from CoreWeave to Nebius to chase a lower price, they can do so easily.


Even if long-term evolution remains unclear, and even if questions about sustainability remain, virtually all forecasts project near-term revenue growth, though differing in the magnitude of those forecasts. 


Provider

2025 Est. Revenue / Run-Rate

2026 Forecast / Target

Key Enterprise Strategy

CoreWeave

~$8.0 Billion

$10B+ (High visibility from backlog)

The market leader. Deep partnership with Microsoft (serving as Azure's "overflow" valve) allows them to capture massive overflow inference demand.

Nebius Group

~$500–550 Million

$3.45B – $7.0B

Aggressive growth. Heavily focused on "AI Cloud 3.1"—a full-stack platform specifically targeting enterprise model deployment and inference.

Iris Energy

~$300 Million (AI specific)

~$3.4 Billion (Annualized AI Revenue target)

"Mega-deal" focus. Recently secured a $9.7B deal with Microsoft, validating the model of miners acting as sovereign infrastructure partners.

Hut 8

~$150–200 Million (HPC)

~$450 Million (Annualized NOI from new lease)

Infrastructure-first. Pivoted to a "landlord" model for AI, signing a $7B/15-year lease deal to host AI workloads, providing extreme stability.

Hive Digital

~$100 Million (Annualized Run-Rate)

~$140 Million (HPC Run-Rate Target)

The "Double Helix." Maintains a strong Bitcoin mining arm while upgrading legacy fleets to Tier 3 data centers for boutique enterprise inference.


CoreWeave arguably has the greatest degree of revenue visibility, though, based on its backlog, which might be as much as two orders of magnitude greater than other competitors. 


Provider

2024 Revenue

2025 Revenue (Forecast)

2026 Revenue (Forecast)

Notes [Sources]

CoreWeave

$1.92B

$5.0-5.1B zacks

$10.9-14.9B spglobal

$55B backlog; GPUaaS leader marketwise

Lambda Labs

~$425M ARR (late)

$520M+ (FY Sep) finance.yahoo

N/A

$500M ARR mid-2025; cloud GPU growth sacra+1

Crusoe Energy

$276M tsginvest

$998M ainvest+1

~$2B tsginvest

Stargate project; stranded gas power tsginvest

Hut 8

N/A

~$650M (annualized) ainvest

N/A

AI expansion; Q4 $162M quarterly ainvest

HIVE Digital

N/A

N/A

BUZZ HPC $140M ARR hivedigitaltechnologies

285% YoY Q2 growth hivedigitaltechnologies

Vast Data

~$200M ARR (early)

N/A

$600M ARR calcalistech+1

AI storage; 5-7 yr contracts calcalistech

Soluna Computing

N/A

N/A

N/A

Q3 2025 rev. up 37%; 100MW AI sites barchart+1


All that noted, perhaps the best rationale for a continued value chain role for the neoclouds is demand for private inference capabilities needed by enterprises.


Buddhist and Christian Takes on "Suffering"

Being as how it is Holy Week for Christians, and focused (for some) on the passion (from Latin passio, "suffering"), or intense ph...