Big tech’s capex splurge may be irrationally exuberant

From the 19th-century railway mania to the telecoms boom at the dawn of the internet age, cautionary tales abound of over-investment in infrastructure fuelled by excitement over a new technology. With the rise of generative artificial intelligence (AI), history is repeating itself. In recent weeks four tech giants—Alphabet, Amazon, Meta and Microsoft—have pledged to spend close to a total of $200b

[ashigaru]

“Hugging Face, a hub for ai enthusiasts, lists more than 650,000 models. The more market share these take from the large proprietary models, the lower the likely returns on investment”