Prof G Markets · Friday, July 31, 2026
Jim Chanos highlighted concerns regarding the current capital expenditure boom, especially in relation to AI, drawing parallels to the dot-com and railroad build-outs which resulted in significant investor losses. He noted that the spending is now more concentrated among hyperscalers and AI companies, increasing risk.
“However, what we are seeing right now is an unprecedented CapX boom. And CapX booms tend to end badly. They tend to leave behind very productive assets.”
“So we're seeing, um, a lot more risk in a lot smaller subset of the market.”