Source: Chartbook
Major technology companies face a coordination problem: each firm's decision to cut capex hinges on competitors' moves, creating genuine uncertainty about whether the industry collectively pulls back or doubles down on infrastructure investment. The outcome directly determines hiring levels, data center buildout, and AI capability distribution over the next 18-24 months. Mutual restraint would benefit all players financially, but any company that cuts first risks ceding competitive advantage to those who keep spending aggressively.