In Ai billions are so 2022; now about trillions; Einhorn, ChatGPT
Spending on AI Is at Epic Levels. Will It Ever Pay Off?
A mega-speculative bet that the technology will rapidly improve, transform the economy and start producing steady profits.
“I hope we don’t take 50 years,” Microsoft CEO Satya Nadella said at a May conference with Meta CEO Mark Zuckerberg, referring to the initially slow adoption of electricity.
“Yeah, well, we’re all investing as if it’s not going to take 50 years,” replied Zuckerberg, who surmised at a recent White House dinner the company’s U.S. spending through 2028 was “probably going to be something like” $600 billion.
Wall Street Journal Sept. 25, 2025
https://www.wsj.com/tech/ai/ai-bubble-building-spree-55ee6128
Turning points are often only clear in hindsight
Will Monday’s CNBC interview with Jensen Huang and Sam Altman, in which Nvidia announced a $100 billion investment in OpenAI, go down in Wall Street legend as the moment when the market’s questioning of its AI exuberance hit critical mass?
Three days later and billionaire hedge-fund manager David Einhorn was articulating what some are thinking.
Hedge fund manager David Einhorn cautioned that the unprecedented amount of spending on artificial intelligence infrastructure may destroy vast amounts of capital.
Einhorn said the numbers being thrown around are "so extreme" and questioned whether spending will deliver good outcomes for the firms making those investments.
He drew a sharp line between the long-term importance of AI and the immediate economics of funding it.
Passive investors have 'fundamentally broken' the market, David Einhorn says
He said fewer traders are paying attention to a firm's fundamental merits as passive investment has taken over.
Indexfonder är en fara för aktiemarknaden och gör börsen till ”rena Solvalla”, enligt finansmannen Christer Gardell
https://englundmacro.blogspot.com/2024/02/passive-investors-have-fundamentally.html
Three years after ChatGPT ignited the AI boom, the business is all about trillions.
The market value of Microsoft, whose Azure cloud has a glistening AI lining, is not far off its recent $4trn record.
Alphabet, which is giving Google an AI makeover, has just become a $3trn company. On a good day, Amazon, with a rival cloud, rounds to that.
Meta, as much about AI these days as about social media, is now firmly a $2trn firm, plus or minus.
AI revenues and expenditures are likewise a 13-figure affair nowadays.
Worldwide spending on AI hardware and software nudged $1trn last year. This is likely to double to $2trn in 2026.
The Economist 18 September 2025
Nvidia to Invest $100 Billion in OpenAI for Data Centers
OpenAI’s ChatGPT is used by roughly 700 million people weekly and takes an intensive amount of computing power to service and build its products.
If the AI stockmarket blows up?
Since the release of ChatGPT in 2022, the value of America’s stockmarket has risen by $21trn. Just ten firms—including Amazon, Broadcom and Nvidia—account for 55% of the rise.
The market is so hot because many believe AI will transform the economy.
“History tells us that periods of major technological innovation are often accompanied by speculative bubbles as investors overreact to genuine advances in productivity,” reads a study published in 2008 by the Federal Reserve Bank of San Francisco
The Economist 7 September 2025
https://www.economist.com/finance-and-economics/2025/09/07/what-if-the-ai-stockmarket-blows-up
If the AI stockmarket blows up?
Since the release of ChatGPT in 2022, the value of America’s stockmarket has risen by $21trn. Just ten firms—including Amazon, Broadcom and Nvidia—account for 55% of the rise.
The market is so hot because many believe AI will transform the economy.
The Economist 7 September 2025
https://www.economist.com/finance-and-economics/2025/09/07/what-if-the-ai-stockmarket-blows-up
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