Monday, November 10, 2025
HomeInvestingThe Good, The Bad, And The Ugly Of The AI Capex Race

The Good, The Bad, And The Ugly Of The AI Capex Race

Silicon Valley is investing heavily in artificial intelligence like never before. The Magnificent Seven—Apple(NASDAQ:AAPL), Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA)—are expected to spend close to $400 billion this year on AI infrastructure.
That’s roughly half of U.S. GDP growth in 2025, according to the latest insight from Sparkline Capital.
The idea is simple – build enough computing power, and the profits will follow. Still, history shows that big bets on transformative tech typically create more volatility than value. At least at first.
The real question, tho, isn’t whether AI will change the world. It’s how much collateral damage we’ll accept along the way.
The AI Prisoner’s Dilemma
What’s happening among Big Tech today looks a lot like a game-theory problem. Each company wants to keep its AI investments

web-interns@dakdan.com

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