If anyone still hoped that the "AI capex wave" would start to slow, the quarterly results of the big four likely proved them wrong. Microsoft, Amazon, Meta and Alphabet overnight added roughly $55 billion to this year's plans, and the combined capital expenditures of hyperscalers on AI infrastructure rose from an estimated $670 billion to about $725 billion just for 2026!
About a third of that is for memory, and it’s far from certain that CAPEX won’t be increased further due to rising prices.
For now they're just numbers with no visible results behind them, but that simply takes time, and only later will it become clear who burned the money and who invested it wisely.
I think that's too little — they should have announced an increase to at least 730🤣
I do believe in AI, but I'm curious what will happen when that cyclical interdependence between companies collapses — what it'll do to the whole market... I'd be interested to know if anyone in leadership still has a real idea of how much they promised to whom for money, what stake was offered in return, and where those exclusivities are 🤷♂️😎