There’s an eye opening article in FT quoting Morgan Stanley about the size of the generative AI bubble developing.
https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce
“Hyperscaler funding of $300bn to $400bn a year compares with annual capex last year for all S&P 500 companies of about $950bn.”
Paywallless: https://archive.ph/2025.07.30-135255/https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce
Tl;dr - if GenAI doesn’t pay off - as Morgan Stanley point out, it may not meet expectations - it will be 10 times higher than the previous bubble pop. 🥤 🍿
https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce
“Hyperscaler funding of $300bn to $400bn a year compares with annual capex last year for all S&P 500 companies of about $950bn.”
Paywallless: https://archive.ph/2025.07.30-135255/https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce
Tl;dr - if GenAI doesn’t pay off - as Morgan Stanley point out, it may not meet expectations - it will be 10 times higher than the previous bubble pop. 🥤 🍿
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