The AI Spending Boom Is Creating a Depreciation Time Bomb

AI Summary

Big Tech companies including Google, Meta, Amazon, and Microsoft are investing heavily in AI infrastructure, with total capital expenditure expected to reach $750 billion this year. This spending surge is driving rapid growth in the AI sector and has significant implications for technology markets and depreciation of assets.

The eye-watering capital expenditure plans of Big Tech has been one of the year’s biggest stories.  Google, Meta, Amazon, and Microsoft have all splurged to secure a podium spot in the race to build out the infrastructure that will run the artificial intelligence (AI) revolution. Total capex by these four firms is expected to reach $750bn (£560bn) this year, around half the annual spending of the entire UK government. It is much higher than this high-tech quartet has budgeted for before. And it is expected to be even higher next…