Policy2h ago
Policy
Analyzing The Massive AI Capex Gap
A $1.5 trillion revenue shortfall looms over current AI infrastructure spending. Analysis from Canary Institute suggests hyperscaler capital expenditures far outpace actual returns. This gap mirrors the fiber-optic bubble of the late 90s. Practitioners must now weigh whether DeepSeek and other open-weight models will permanently erode the profitability of proprietary AI systems.