←back to thread

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

(paulkedrosky.com)
346 points throw0101c | 1 comments | 18 Jul 25 19:59 UTC | HN request time: 0.21s | source
Show context
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. jnmandal ◴[19 Jul 25 09:55 UTC] No.44614056[source]▶
> Just because we invest these ressources in AI does not mean we could mobilize the same capital for other pursuits.

No offense but you sound naive here. This is exactly how dry powder manifests in PE/VC and is even predictable under cash rich corporate regines via M&A.

Trends like this are ripe for acceleration under favorable environmental conditions like high interest rates. Not to mention, a lot of it develops out of peer pressure.

Sometimes when your job is to deploy capital, you just deploy it. Of course you try to put it in the best possible places. But when those are few, well yeah... This happens.