How I learned to stop worrying and love hyperscaler capex
The AI boom is an oddly miserable bubble. Despite interesting tech, huge new companies, and products with global reach, AI The post How I learned to stop worrying and love hyperscaler capex appeared first on The New Stack .
The AI boom has been met with a variety of reactions from critics, despite the emergence of interesting technologies and globally-reaching products. Some detractors argue that AI companies will eventually run out of data, rendering their models ineffective. Others claim AI lacks practical applications. However, many of these initial criticisms have proven unfounded.
Recently, there has been a new argument suggesting that major cloud providers, such as AWS, Google Cloud, and Azure, are spending too much on AI infrastructure, potentially draining both their resources and investors' confidence. To examine this claim, data from these cloud groups was analyzed. The findings suggest that growth is accelerating for hyperscalers, their profitability scales with this growth, and their capital expenditure (capex) efficiency is improving.
Written by urgent.news from The New Stack's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
