BUBBLE? Silicon Valley’s AI Spend Goes Berserk as Microsoft Starts Cashing In.

This week, Meta said it’s expecting to shell out between $66 billion and $72 billion this year, and that it expects to spend even more next year on data centers and hiring.

Microsoft, on the other hand, said that it is expecting to spend more than $100 billion next year, with much of it going toward AI. This upcoming quarter alone, the company is eyeing $30 billion in capital expenditures, again mostly for AI, in what is a record forecast for the company.

Apple also posted better than expected revenue on its earnings report this week, but that was mostly attributable to iPhone sales. Despite that, CEO Tim Cook told investors during the company’s earnings call that the tech giant was planning to “significantly” increase its investments in AI to catch up with rivals and was open to acquisitions to do so.

This sure feels like a repeat of the dot-com bubble. That’s just an awful lot of money going into something that doesn’t yet return any profits.

If there is a shakeout, it’ll be brutal.