{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/64c1fb4a8e16bd00116ffd75/6a037c11a257c57500d93bd2?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"Something Is Seriously Off About the New $725B AI Boom","thumbnail_width":200,"thumbnail_height":200,"thumbnail_url":"https://open-images.acast.com/shows/64c1fb4a8e16bd00116ffd75/1778614721119-9ffa5b0d-ea44-4d84-b918-58abad934528.jpeg?height=200","description":"<p>AI CapEx is projected to hit $725B this year, up 77% from $410B, as the Iran war pressures the global economy, with AI/tech and oil and gas outperforming while other sectors struggle. Saudi Aramco warns gas and jet fuel stockpiles could reach critically low levels if the Strait of Hormuz can’t reopen, and the New York Fed’s Global Supply Chain Pressure Index is at its highest since COVID-era peaks. All while Google surges, Meta falters, and Microsoft tests out usage based pricing under margin pressure. Meanwhile, OpenAI’s woes multiply under the weight of an astounding burn rate and an inability to close financing for a critical AI chip deal with Broadcom. Where does all the spending take us in the end?&nbsp;</p><p><br></p><p><strong>CHAPTERS</strong></p><p>00:00 AI CapEx hits $725B and why it should concern investors</p><p>00:35 How the Iran war is reshaping global sector performance</p><p>01:16 Global Supply Chain Pressure Index reaches post-COVID peak</p><p>02:20 Big Tech CapEx breakdown&nbsp;14 Meta, Microsoft, Alphabet, Amazon</p><p>02:43 Google Cloud wins the quarter with 63% revenue growth</p><p>03:00 Microsoft shifts to usage-based pricing under margin pressure</p><p>04:13 Why Meta's CapEx spending is alarming investors</p><p>05:05 OpenAI's $18B financing deal is stalling</p><p>05:28 Missed growth targets and a $115B projected burn at OpenAI</p><p>06:00 OpenAI's IPO ambitions versus the CFO's concerns</p><p>06:23 Musk vs. Altman trial&nbsp;14 Satya Nadella testifies</p><p>07:13 Microsoft's $13B investment in OpenAI and the nonprofit dispute</p><p>08:03 What Elon Musk is actually asking the court for</p><p>08:44 Apple's AI strategy and the new CEO's biggest question</p><p>09:18 Apple closes a chip deal with Intel</p><p>09:42 Why the U.S. government owns 10% of Intel</p><p><br></p><p>IF YOU LIKED THIS, WATCH:</p><p>→ Record High Gas Prices Thanks to Iran War, Plus UAE Leaves OPEC: <a href=\"https://youtu.be/SAJUfTa30sA\" rel=\"noopener noreferrer\" target=\"_blank\">https://youtu.be/SAJUfTa30sA</a></p><p>→ Elon Musk Just Exposed OpenAI's Biggest Secret in Court: <a href=\"https://youtu.be/b5Ye6iYzM6E\" rel=\"noopener noreferrer\" target=\"_blank\">https://youtu.be/b5Ye6iYzM6E</a>&nbsp;</p><p>→ What’s Apple Going to Do About AI? <a href=\"https://youtu.be/EQEzwYxllLQ\" rel=\"noopener noreferrer\" target=\"_blank\">https://youtu.be/EQEzwYxllLQ</a>&nbsp;</p><p><br></p><p>SOURCES &amp; FURTHER READING</p><p><strong>Global Supply Chain Stress Signals</strong></p><ul><li>Global supply chains hit worst disruption levels since Covid shock data shows: https://www.newyorkfed.org/research/policy/gscpi#/interactive</li></ul><p><strong>AI Spending Boom And Big Tech Capex</strong></p><ul><li>AI spending explosion revealed as Big Tech races toward 725 billion hyperscaler capex surge: https://finance.yahoo.com/markets/article/magnificent-7-earnings-rush-reveals-ai-spending-surge-with-hyperscaler-capex-set-to-reach-725-billion-in-2026-224901707.html</li><li>Big Tech AI boom could push capital expenditures past 1 trillion by 2027: https://www.cnbc.com/2026/04/30/ai-boom-big-tech-capital-expenditures-now-seen-topping-1-trillion-in-2027-.html</li></ul><p><strong>Cloud Profits And AI Cost Pressures</strong></p><ul><li>Microsoft cloud margins squeezed as AI demand surges and pricing shifts begin: https://thein.fo/3Pba385</li><li>AI costs reshape Big Tech profitability and force strategic pricing changes: https://www.ft.com/content/2138e81c-4d86-46f4-8ca0-287f8b737cdf?syn-25a6b1a6=1</li></ul><p><strong>AI Chips And Infrastructure Race</strong></p><ul><li>OpenAI seeks 18 billion in funding to dominate next generation AI chip race: https://finance.yahoo.com/sectors/technology/articles/openai-18-billion-chip-financing-190457172.html</li><li>Apple and Intel move toward major chipmaking deal to secure AI future: https://www.wsj.com/tech/apple-intel-have-reached-preliminary-chip-making-agreement-69eb9370?mod=hp_lead_pos2</li><li>AI chip boom turns unexpected companies into breakout tech stock winners: https://www.wsj.com/finance/stocks/the-chip-craze-is-turning-a-glass-company-and-a-toilet-maker-into-ai-stocks-67198276?mod=hp_lead_pos3</li></ul><p><strong>AI Power Struggles And Industry Drama</strong></p><ul><li>Microsoft CEO Satya Nadella pulled into Musk and Altman AI power battle: https://www.cnbc.com/2026/05/11/microsoft-ceo-satya-nadella-musk-altman-trial.html</li></ul>","author_name":"Neeta Bidwai"}