By Thomas Claburn
Publication Date: 2026-04-26 14:48:00
How much does AI cost? It’s a simple and important question – the answer will determine the fate of companies and society. But it’s also a question that can’t be meaningfully answered without additional context.
A possible answer would be “too much.” According to Stanford HAI’s 2026 Artificial Intelligence Index Report, private AI investments in the US reached $285.9 billion in 2025. While this money has economic benefits, it also puts a strain on environmental resources, utilities and communities.
The report states: “AI data center power capacity increased to 29.6 GW, comparable to New York State at peak demand, and annual GPT-4o inferred water consumption alone could exceed the drinking water needs of 12 million people.”
Added to this is the cost to human competence when skills atrophy or never develop due to over-reliance on fast slot machines.
