Tag: AI capex
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Big Tech’s $1.09 Trillion in Data-Center Leases Sits Off the Balance Sheet
Key Takeaways Five hyperscalers have signed ~$1.09 trillion in data-center leases not yet started. That is ~4x the $285 billion of lease debt already on their books. A lease is not booked as debt until the building is ready to…
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AI Chip Depreciation: Amazon Cut Its Estimate, Meta Raised Its Own
Key Takeaways Hyperscalers depreciate AI servers over 5 to 6 years; critics say the real life is 2 to 3. Effective 2025, Amazon cut its server-life estimate to five years; Meta raised its own to 5.5. Michael Burry estimates the…
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Why AI Inference Costs Keep Rising While the Price Per Token Falls
AI inference costs keep rising because token use, reasoning work, and demand can grow faster than price per token falls. Compare unit price with cost per task.
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Amazon AI CapEx: Growth Now, Cash Later?
Amazon AI CapEx is becoming a test of how investors read growth and cash at the same time. Amazon reported strong Q2 sales and faster AWS expansion, yet its trailing free cash flow moved below zero. I think the useful…
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Microsoft AI Returns Face a Hardware Refresh Test
Microsoft AI returns are no longer just a promise attached to a spending plan. Microsoft’s fiscal 2026 fourth-quarter figures give us unusually concrete evidence of demand: Azure’s annual revenue passed $100 billion, while Microsoft 365 Copilot exceeded 30 million paid…