Multiple analysts are sounding the alarm on the AI investment boom. One points to $5 trillion in planned capex needing 'trillions of dollars of revenue' that are 'largely impossible' to achieve. Another calls out an 'OpenAI bubble,' while a third asks the key question: 'Where's the ROI?'.
The tape Bloomberg Surveillance · Jul 9
“We're talking about four trillion dollars of revenue growth that's more than ten percent of GDP of the US economy going to hyperscaler revenues. That is a largely implausible outcome.”
MicroStrategy sold 3,588 Bitcoin for $216 million, its largest sale to date, to fund preferred dividends. Despite the massive sale, the market absorbed the supply, with Bitcoin's price rising 3% on the week, leading some to call a market bottom.
All-In with Chamath, Jason, Sacks & Friedberg · Open Source Wins, AGI Is Here, and Scorsese's AI Toolkit with CEOs of Cerebras & Black Forest LabsJul 10
The AI gold rush is on for hardware providers. Cerebras reports a $25 billion backlog for its chips, while SK Hynix, whose stock is up sevenfold, is eyeing a massive $28 billion Nasdaq IPO. The memory sector is set to receive up to 50% of the coming trillion-dollar AI capex wave.