Every time a major tech company reports a marginally-less-than-perfect quarter, the ‘AI is a bubble’ crowd gets louder. They cite ‘diminishing returns’ and ‘overcapacity’ — while the largest capital expenditure cycle in history keeps accelerating around them.
And then, in the span of a single week, the bears got handed two more data points they’ll spend months trying to explain away.
While the ‘Magnificent Seven’ usually hog the headlines, the real story is happening one layer beneath them — in the infrastructure that keeps the whole establishment standing.
AI’s ‘brain’ has already been built. Now the buildout is moving into the nervous system.
This post originally appeared at InvestorPlace.