Big Tech’s AI Spending Spree Rattles S&P 500
The S&P 500 slid Thursday as Meta, Microsoft, and Alphabet revealed staggering $80 billion in combined AI infrastructure investments—with even higher capex projected through 2026. Meta shares plunged 12% after forecasting potential $100 billion expenditures next year, while Alphabet lifted its 2025 capex guidance to $93 billion. "History warns against unchecked tech exuberance," cautioned SLC Management's Dec Mullarkey, highlighting investor skepticism about ROI.
Unlike crypto's decentralized innovation, Big Tech's centralized capital burn raises sustainability questions. The market reaction underscores growing divides between traditional tech growth models and blockchain's asset-light approaches.