Kamath highlighted that AI firms are churning out $1 trillion in capital each year, yet revenue remains stuck at around $100–$200 billion. He pointed out that the gap could reach $700‑$800 billion annually, a figure that dwarfs the current earnings.
The Middle East and other foreign investors have already funneled billions into U.S. AI startups, but sustaining that flow is uncertain. Kamath questioned whether the industry can attract the same amount of fresh capital each year, noting that the $1 trillion influx is hard to replicate.
If AI disrupts 10% of the $100‑$120 trillion global services sector, it could unlock $6‑$7 trillion in productivity, yet Kamath said no such gains have materialised on the ground. He stressed that the promised productivity leap remains theoretical.
With U.S. Treasury rates poised to climb to 5‑7%, the cost of borrowing will rise, making capital acquisition tougher. Investors who lock in large sums now may gain an edge, while firms that cannot secure funding risk sliding toward liquidation or a market correction.