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Today in TechThe No. 1 tech publisher. We report on the hottest tech trends from leading experts and the biggest brands. Author: Foundry
Host Keith Shaw and his expert guests discuss the latest technology news and trends happening in the industry. Watch new episodes twice each week or listen to the podcast. Language: en Genres: Technology Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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The Hidden Costs of AI: Are Companies Spending Too Much?
Tuesday, 20 October, 2026
Companies have spent billions racing to adopt artificial intelligence. But as AI moves from experimentation into production, are businesses discovering that the real costs are much higher than expected? In this episode of Today in Tech, host Keith Shaw talks with Erwan Menard, senior vice president of product at Crusoe, about the economics of AI, the hidden costs of AI agents, and whether the industry's massive investments in infrastructure are sustainable. The episode explores why GPU pricing and token costs tell only part of the story, how businesses should measure AI return on investment (ROI), and why inference workloads are changing the economics of enterprise AI. Keith and Erwan also discuss the growing role of open AI models, how companies can reduce costs by choosing the right model for each task, and why electricity availability may be a bigger obstacle to AI growth than GPU shortages or funding. Topics covered: * Why AI agents can dramatically increase inference costs * The hidden expenses of scaling AI from pilot projects to production * How businesses should measure AI ROI and successful task completion * Why open models and smaller language models could lower enterprise AI costs * The growing energy crisis facing AI data centers * Community backlash against data center construction and electricity demand * Whether companies are overbuilding AI infrastructure * Are we experiencing an AI bubble, or is demand just getting started? Menard argues that AI's biggest challenge isn't a lack of demand or investment. It's the ability to deliver enough power and infrastructure to support continued growth. But Keith challenges that optimism, questioning whether AI spending, circular investments and infrastructure expansion are creating an unsustainable boom. Is AI delivering enough value to justify its growing costs? And who ultimately pays for the infrastructure behind it?
