The a16z Show · Friday, August 28, 2026
The demand for AI compute power is so immense that major hyper-scalers are collectively increasing their capital expenditure to an unprecedented $700 billion this year. This surge in spending is a clear indicator that demand is outstripping supply, not just a cyclical trend.
“I mean, if you look at the hyper scalers, right? They're capex spend has been exploding. This year, two trillion dollars. Collectively, across the bay, hyper scalers this year, it's like $700 billion.”
“Because it's never been seen before. Right? So that's a clear, clear sign.”