Thread | Brutkey

There’s an eye opening article in FT quoting Morgan Stanley about the size of the generative AI bubble developing.

https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce

“Hyperscaler funding of $300bn to $400bn a year compares with annual capex last year for all S&P 500 companies of about $950bn.”

Paywallless: https://archive.ph/2025.07.30-135255/https://www.ft.com/content/7052c560-4f31-4f45-bed0-cbc84453b3ce

Tl;dr - if GenAI doesn’t pay off - as Morgan Stanley point out, it may not meet expectations - it will be 10 times higher than the previous bubble pop. 🥤 🍿

»Over the last six months, capital expenditures on AI—counting just information processing equipment and software, by the way—added more to the growth of the US economy than all consumer spending combined.«

https://www.bloodinthemachine.com/p/the-ai-bubble-is-so-big-its-propping

Via https://mas.to/@carnage4life/114981125265704272

The economy is fine. Is it…?