The key to understanding the pace of today’s infrastructure buildout is to recognize that while AI optimism is certainly a driver of AI CapEx, it is not the only one. The cloud players exist in a ruthless oligopoly with intense competition. [...]
Every time Microsoft escalates, Amazon is motivated to escalate to keep up. And vice versa. We are now in a cycle of competitive escalation between three of the biggest companies in the history of the world, collectively worth more than $7T. At each cycle of the escalation, there is an easy justification—we have plenty of money to afford this. With more commitment comes more confidence, and this loop becomes self-reinforcing. Supply constraints turbocharge this dynamic: If you don’t acquire land, power and labor now, someone else will.
Recent articles
- My AI/LLM predictions for the next 1, 3 and 6 years, for Oxide and Friends - 10th January 2025
- Weeknotes: Starting 2025 a little slow - 4th January 2025
- I still don't think companies serve you ads based on spying through your microphone - 2nd January 2025