AI CapEx
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Breaking this out into a separate thread.
@jon-nyc said in Trumpenomics:
Another interesting thing about our growth is most of it is AI capex. The mag 7 are spending over a billion dollars a day on new data center infrastructure.
That has exceeded consumer spending as a proportion of growth.
https://www.washingtonpost.com/technology/2025/08/04/big-tech-ai-spending-economy/
U.S. GDP growth is estimated to be around 1.4% this year, and AI driven capital expenditure is expected to make up half of that.
Amazon, Alphabet/Google, Meta/Facebook, Microsoft ... all expect to spend over $70 Billion each on data centers this year. NVIDIA making $44 Billion a quarter selling chips for AI.
NVIDIA, and now also Microsoft, crossed the $4 Trillion threshold in market capitalization.
The entire Apollo program cost "only" an inflation-adjusted $180 Billion.
There is still skepticism on whether there will be sufficient returns for all these investments, whether the growth can be sustained after the infrastructure is built.
It's going to be traumatic if this whole thing turns out to be a bubble that pops.
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So ... quick check: who here pays subscription to use AI service (e.g., AI-specific subscriptions like ChatGPT or Grok or Anthropic, or through more general services like Microsoft/Office365 or Adobe Creative Cloud that now comes with AI services)?
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Breaking this out into a separate thread.
@jon-nyc said in Trumpenomics:
Another interesting thing about our growth is most of it is AI capex. The mag 7 are spending over a billion dollars a day on new data center infrastructure.
That has exceeded consumer spending as a proportion of growth.
https://www.washingtonpost.com/technology/2025/08/04/big-tech-ai-spending-economy/
U.S. GDP growth is estimated to be around 1.4% this year, and AI driven capital expenditure is expected to make up half of that.
Amazon, Alphabet/Google, Meta/Facebook, Microsoft ... all expect to spend over $70 Billion each on data centers this year. NVIDIA making $44 Billion a quarter selling chips for AI.
NVIDIA, and now also Microsoft, crossed the $4 Trillion threshold in market capitalization.
The entire Apollo program cost "only" an inflation-adjusted $180 Billion.
There is still skepticism on whether there will be sufficient returns for all these investments, whether the growth can be sustained after the infrastructure is built.
It's going to be traumatic if this whole thing turns out to be a bubble that pops.
...
So ... quick check: who here pays subscription to use AI service (e.g., AI-specific subscriptions like ChatGPT or Grok or Anthropic, or through more general services like Microsoft/Office365 or Adobe Creative Cloud that now comes with AI services)?
So ... quick check: who here pays subscription to use AI service (e.g., AI-specific subscriptions like ChatGPT or Grok or Anthropic, of through more general services like Microsoft/Office365 or Adobe Creative Cloud that now comes with AI services)?
I have Office 365, but not because of any wish to use AI.
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They keep telling me to use this stuff at work, and I really don't want to. Whenever some executive stands up and starts talking about the future, I get the distinct impression that they have recently attended a buzzword convention but have no real idea what they're talking about.
Business as usual, IOW.
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Me pre AI writing code for me vs me with AI writing code for me would not be a close comparison. If I was interested in forging a career in coding, I would consider AI to be an essential tool. With which I would vanquish my competition that refused to use AI.
