The Good, The Bad, And The Ugly Of The AI Capex Race

Benzinga_recent_news11-09

Silicon Valley is investing heavily in artificial intelligence like never before. The Magnificent Seven—Apple(NASDAQ:AAPL), Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (...

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The Magnificent Seven—Apple(NASDAQ:AAPL), Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (...</p>\n\n<a href=\"https://www.benzinga.com/markets/tech/25/11/48739649/the-good-the-bad-and-the-ugly-of-the-ai-capex-race\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Good, The Bad, And The Ugly Of The AI Capex Race</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Good, The Bad, And The Ugly Of The AI Capex Race\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-09 01:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/markets/tech/25/11/48739649/the-good-the-bad-and-the-ugly-of-the-ai-capex-race><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Silicon Valley is investing heavily in artificial intelligence like never before. The Magnificent Seven—Apple(NASDAQ:AAPL), Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (...</p>\n\n<a href=\"https://www.benzinga.com/markets/tech/25/11/48739649/the-good-the-bad-and-the-ugly-of-the-ai-capex-race\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PSQ","symbol_name":"做空纳斯达克100指数ETF-ProShares","start_time":0,"source_url":"https://www.benzinga.com/markets/tech/25/11/48739649/the-good-the-bad-and-the-ugly-of-the-ai-capex-race","article_id":"2582668568","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/11/08/AI-Bubble-Bursting-.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/markets/tech/25/11/48739649/the-good-the-bad-and-the-ugly-of-the-ai-capex-race","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2582668568","pubTimestamp":1762622160,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Silicon Valley is investing heavily in artificial intelligence like never before.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PSQ":"做空纳斯达克100指数ETF-ProShares","LU1121112475.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USDHDG) ACC","USJW.SI":"ALPHAB 3xLongSG261006","LU0347712357.USD":"BNP PARIBAS GLOBAL ENVIRONMENT \"C\" (USD) ACC","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","QLD":"2倍做多纳斯达克100指数ETF-ProShares","NVD3.UK":"LS 3X NVIDIA","NVDS":"1.5倍做空NVDA ETF-Tradr","MACW.SI":"APPLE 3xLongSG261006","LU0879622024.SGD":"Schroder ISF Global Multi-Asset Income A Dis SGD-H","NVD2.UK":"2X NVIDIA ETP","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0323240290.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AD\" INC","NVDU":"2倍做多NVDA ETF-Direxion","NVDA":"英伟达","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H",".IXIC":"NASDAQ Composite","2NVD.UK":"2X NVIDIA ETP","NVDX":"2倍做多NVDA ETF-T-Rex","NVIW.SI":"NVDA 3xLongSG261006","LU1861558580.USD":"日兴方舟颠覆性创新基金B","QID":"两倍做空纳斯达克指数ETF-ProShares","GOOG":"谷歌","AI":"C3.ai, Inc.","AAPL":"苹果","SNVD.UK":"LS -1X NVIDIA","NVD":"2倍做空NVDA ETF-GraniteShares","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","NVDY":"NVDA期权收益策略ETF-YieldMax","USAW.SI":"AMZN 3xLongSG261006","LU1196500208.SGD":"NORDEA STABLE RETURN \"HB\" (SGDHDG) ACC","3NVD.UK":"LS 3X NVIDIA","META":"Meta Platforms, Inc.","GOOGL":"谷歌A","SQQQ":"纳指三倍做空ETF","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","MSFT":"微软","NVDS.UK":"LS -1X NVIDIA","LU0082616367.USD":"摩根大通美国科技A（dist）","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","AMZN":"亚马逊","NVDD":"1倍做空NVDA ETF-Direxion","TSYW.SI":"TESLA 3xLongSG261006","TQQQ":"纳指三倍做多ETF"},"translate_title":"人工智能资本支出竞赛的好、坏和丑陋","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"QID":0.6,"MSFT":1,"MACW.SI":0.6,"NVD":0.6,"2NVD.UK":0.6,"TQQQ":0.6,"PSQ":0.6,"USJW.SI":0.6,"GOOG":1,"SNVD.UK":0.6,"TSYW.SI":0.6,"NVDY":0.6,"AAPL":1,"NQmain":0.6,"META":1,"AI":0.9,"NVDX":0.6,"NVIW.SI":0.6,"USAW.SI":0.6,"QLD":0.6,"NVDD":0.6,"AMZN":1,"GOOGL":0.9,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"3NVD.UK":0.6,".IXIC":0.9,"NVDA":1,"MNQmain":0.6,"SQQQ":0.6,"NVD3.UK":0.6,"NVD2.UK":0.6},"content_text":"Silicon Valley is investing heavily in artificial intelligence like never before. The Magnificent Seven—Apple(NASDAQ:AAPL), Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA)—are expected to spend close to $400 billion this year on AI infrastructure.\nThat's roughly half of U.S. GDP growth in 2025, according to the latest insight from Sparkline Capital.\nThe idea is simple – build enough computing power, and the profits will follow. Still, history shows that big bets on transformative tech typically create more volatility than value. At least at first.\nThe real question, tho, isn't whether AI will change the world. It's how much collateral damage we'll accept along the way.\nWhat's happening among Big Tech today looks a lot like a game-theory problem. Each company wants to keep its AI investments \"rational,\" but none can afford to slow down.\nMeta's Mark Zuckerberg admits the firm might \"misspend a couple of hundred billion dollars,\" yet fears losing the race even more. Meanwhile, Alphabet's co-founder Larry Page once said he'd rather \"go bankrupt than lose.\"\nThe optimal move would be cooperation—moderate spending, shared standards, maybe even a truce. But in practice, competition drives every player to overspend. Sparkline's analysis shows that corporate capital intensity across tech now mirrors that of utilities, a sector not exactly known for explosive returns.\nThe same companies that once thrived as asset-light—scaling software instead of hardware—are becoming builders of massive, depreciating infrastructure. The irony? In their attempt to automate everything, they've recreated the economics of a steel mill.\nIn the 1800s, railroads transformed America but bankrupted dozens of their investors. A century later, telecom firms laid 80 million miles of fiber-optic cable during the dot-com boom—most of which went dark after the crash.\nThe pattern is almost textbook. A technological breakthrough sparks enthusiasm, investment floods in, demand lags behind supply, valuations bubble, and then collapse.\nQuietly, the infrastructure from the frenzy powers the next wave of growth.\n\"The builders rarely capture most of the value—they subsidize it for everyone else,\" Sparkline's Kai Wu notes. Netflix, Facebook, and Amazon owe their early rise to cheap bandwidth left behind by bankrupt telecoms.\nThat's why some economists, such as Stanford's Professor Erik Brynjolfsson, argue that the AI payoff will take time.\nLike electricity or the internet, AI's productivity gains depend on \"complementary investments\"—new processes, retraining, even cultural shifts. These are slow, messy, and human. But once they click, the returns can be exponential.\nThe Financial Times summarized the debate between economists and technologists as a tug-of-war between realism and faith.\nIn the \"good\" scenario, AI ends scarcity. The Dallas Fed's Mark Wynne and Lillian Derr modeled this utopian version. Superintelligent systems generate infinite knowledge, productivity soars, and GDP per capita explodes.\nBut there's a \"bad\" path too. The AI arms race could fuel reckless spending, inflate valuations, and hollow out returns. Sparkline's data show firms ramping up capital expenditures tend to underperform peers by 8 percent a year.\nIf the $5 trillion AI buildout fails to generate proportionate revenue (Bain estimates it would take $2 trillion annually by 2030 to justify today's pace), then this could end like the telecom crash: a glut of compute capacity and collapsing margins.\nAnd then there's the \"ugly\" case—the one Wynne and Derr half-jokingly modeled. AI reaches singularity, and GDP drops to zero because there are no humans left to measure it. Economists rarely quantify extinction risk, but in 202,5 it's on the slides of central bankers.\nStill, the middle ground may be where reality lands. AI is likely to reshape economies like electricity—a gradual, uneven journey of creative destruction. The near-term chaos of overbuilding might be the price of long-term abundance.\nRead Next: Elon Musk’s Trillion-Dollar Pay Package Approved By Tesla Shareholders Amid AI, Robotics Push","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.10","shortVersion":"4.35.10","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2582668568","isCrawlerRequest":true}