Big Tech Should Be Spending Big on AI
As I am one of the more outspoken critics of generative AI mania, the following statement may come as a surprise: It is OK that Big Tech is pouring huge amounts of cash into AI-focused capex. I would go so far as to say that Big Tech is doing the right thing. While Wall Street and Silicon Valley are still grappling with how generative AI will be used by the masses, the big picture regarding how AI will eventually come to define all computing is flying under the radar. Big Tech capex exploding higher is a necessity, and free cash flow projections need to be reexamined as a result.
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