AI’s finally expensive enough to make Wall Street nervous
TL;DR
Working hard, or bear-ly working? | Image: Cath Virginia / The Verge, Getty Images It's earnings season, and investors got an unpleasant surprise from Google: an increase on its spending estimate, to as much as $205 billion - from the last quarter's projection of up to $190 billion. Even the lower end of Google's new projected range - $195 billion - is much more than the company had previously forecast as its top end spending.
Nauti's Take
The new nervousness has an upside: once investors ask for evidence instead of announcements, AI budgets flow toward what measurably works. The risk is the counter-swing, because trimmed capex hits infrastructure and cheap model pricing first, and that is exactly what smaller players run on.
Anyone building on a single cloud today should already know a second option, Nauti says.
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