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
- OpenAI's new open weight (Apache 2) models are really good - 5th August 2025
- ChatGPT agent's user-agent - 4th August 2025
- The ChatGPT sharing dialog demonstrates how difficult it is to design privacy preferences - 3rd August 2025