Big tech companies are expected to spend an eye-popping $1 trillion on capital expenditures over the next five years, driven by the race to dominate artificial intelligence. Wall Street is already pencilling in these expectations. This massive investment, however, raises concerns about irrational exuberance and potential risks. Companies like Apple are taking a more cautious approach compared to others. The AI-fueled equity bubble suggests that big tech will lead the charge in the coming months, but smaller AI companies may struggle to compete due to limited access to the necessary computing power. Legacy tech faces a big reality check as companies like Google pivot to embrace AI.
It looks as though big tech has succumbed to irrational exuberance. In the giants’ trillion-dollar AI arms race, three big risks could unfold https://t.co/TylATshM5N 👇
‘An AI-fueled equity bubble’ will see big tech lead the charge in coming months https://t.co/zHeRe9xjgP
As entire companies like Google pivot to embrace artificial intelligence, smaller AI companies risk losing access to the kind of computer power that billions of dollars can buy. https://t.co/Mk2ZICSbay
#LeadStoryOnET | As #investors buy into #AI craze, legacy #tech faces big reality check https://t.co/Qxhp11zqnh
Big Tech's spending on the AI race could surpass $1 trillion in the next five years https://t.co/0WCzoKnzSt
"Wall Street is already pencilling in expectations that the four firms’ capex could come to an eye-popping $1trn over the next five years (Apple is taking a more cautious approach)." Big tech’s capex splurge may be irrationally exuberant @The Economist https://t.co/0JB2f5FVsJ