Miguel Afonso Caetano<p>"It’s reminiscent of the age of business titans and “robber barons” who dominated railroads, steel and other enterprises. And as happened then, today’s massive companies, with their ability to spend (and borrow), are making their moats even deeper and wider. Even formidable competitors, such as OpenAI, are hard-pressed to keep up.</p><p>A look at one key line item in company earnings reports—capital expenditures—shows that the most valuable tech companies are buying and building stuff at a record pace. The Magnificent 7 tech firms have collectively spent a record $102.5 billion on capex in their most recent quarters, nearly all from Meta, Alphabet (Google), Microsoft and Amazon. (Apple, Nvidia and Tesla together contributed a mere $6.7 billion.)</p><p>Investor and tech pundit Paul Kedrosky says that, as a percentage of gross domestic product, spending on AI infrastructure has already exceeded spending on telecom and internet infrastructure from the dot-com boom—and it’s still growing. He also argues that one explanation for the U.S. economy’s ongoing strength, despite tariffs, is that spending on IT infrastructure is so big that it’s acting as a sort of private-sector stimulus program."</p><p><a href="https://www.wsj.com/tech/ai/silicon-valley-ai-infrastructure-capex-cffe0431" rel="nofollow noopener" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">wsj.com/tech/ai/silicon-valley</span><span class="invisible">-ai-infrastructure-capex-cffe0431</span></a></p><p><a href="https://tldr.nettime.org/tags/AI" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>AI</span></a> <a href="https://tldr.nettime.org/tags/GenerativeAI" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>GenerativeAI</span></a> <a href="https://tldr.nettime.org/tags/BigTech" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>BigTech</span></a> <a href="https://tldr.nettime.org/tags/SiliconValley" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>SiliconValley</span></a> <a href="https://tldr.nettime.org/tags/AIInfrastructure" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>AIInfrastructure</span></a></p>