Big Tech's Capital Spending Surge: A New Era
Update: 2025-12-02
Description
Big Tech companies, once known for efficient business models, are now spending billions on AI, transforming into capital-intensive operations. Microsofts capital spending, for instance, now accounts for 25% of its revenue. Despite investor confidence, concerns are rising due to uncertain returns and increasing costs of AI chips and servers. This shift could lead to lower valuations in the long run.
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