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AI capex is so big that it's affecting economic statistics

(paulkedrosky.com)
339 points throw0101c | 1 comments | 18 Jul 25 19:59 UTC | HN request time: 0.374s | source
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lucbocahut ◴[18 Jul 25 21:43 UTC] No.44610143[source]▶
The main argument builds on the assumption that the economy is a zero sum game when it clearly is not. Just because we invest these ressources in AI does not mean we could mobilize the same capital for other pursuits.

Precisely AI is being built out today because the value returned is expected to be massive. I would argue this value will be far bigger than railroads ever could be.

Overspending will happen, for sure, in certain geographies or for specialty hardware, maybe even capacity will outpace demand for a while, but I don’t think the author makes a good case that we are there yet.

replies(3): >>44610199 #>>44610226 #>>44614056 #
1. arthurofbabylon ◴[18 Jul 25 21:50 UTC] No.44610199[source]▶
> "... builds on the assumption that the economy is a zero sum game when it clearly is not"

Be cautious making assessments as to compounding effects; while it remains the critical attribute, the compounding nature of a system is not always obvious. For example, the author is correct that financing for AI CapEx is starving other fields of investment at least in the short term.