Early last year there was a little moment when MSFT signalled it might (might!) pull back from it's AI-related Capex spend. It lasted all of about 6 weeks before they came back to the table with a "I'll see you and raise you" number on how much they were gonna sink into infrastructure. But that's nothing compared to what we're now seeing.
- META: $115b – $135b (easy to see how given it keeps offering a billion dollars to anyone with good credentials from a previous AI startup to come join them)
- MSFT: on track for $150b (annualised)
- GOOG: $175b – $185b (double last year)
- AMZN: $200b (up from $135b)
Some handy context I went back and found too. Google's ENTIRE capex spend in 2020: $22b. Outlier low? Nope: 2021: $25b. It's hasn't doubled its spending. Or quadrupled it. No, it's increased it by a factor of about 8x.
Safe to say this AI boom / bubble is still in full swing right?
GOOG: I'm spending $180b on Capex. AMZN: "Hold my beer"
byu/lowfrequencyinvst instocks
Posted by lowfrequencyinvst
5 Comments
Madness
Its an arms race, and nobody can afford to be left behind.
if these companies can cut 10,000-30,000 workers they can potentially save 1 billion – 10 billion a year and on top of that have higher productivity
Im gonna give credit to these guys
After all they rule the digital western world. They might know what they are doing and also i think they are sharing synergicaly these investments as part of US geopolitical tactics
Afterall economy and capital its a war against china
Idk. In long all of these and looking to buy more if tomorrow is red again
Meanwhile market reaction: generative AI ROI is a joke, AMZN down 10%. Nvidia GPU bagholders: CRWV, NBIS -10% a least today as well.
I these results keep coming up, precipitous fall will come for semiconductor companies as well. This capex is not sustainable.