Source: The Verge
Microsoft, Google, Amazon, and Meta are each committing $10+ billion annually to AI infrastructure with no clear ROI threshold. The capex race has become self-perpetuating competitive theater rather than a rational response to market demand. The real constraint won't be economics or technical progress, but regulatory intervention or a significant player's financial breaking point, meaning this buildout cycle could sustain wasteful overinvestment for years before market forces correct course.