POPA Recon😇What happens when the AI boom runs out of money (Ben Thompson) source
😇What happens when the AI boom runs out of money (Ben Thompson) source 1. AI’s next bottleneck is money - AI investment is moving down the capital curve from big tech free cash flow to corporate bonds, capital increase, and pension fund/insurance funds. - Estimates are about $800 billion in CapEx this year and $1.3 trillion next year. - If capital markets close before AI sales can cover investments, a large-scale correction will occur. 2. The key is the time difference in profits - The current compute shortage is the result of conservative expansion. - On the other hand, fab and data center…
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