Is The AI Spending Boom Creating A Depreciation Time Bomb?

Is The AI Spending Boom Creating A Depreciation Time Bomb? Via City AM, Big Tech's AI spending has exploded, with Google, Microsoft, Amazon, and Meta collectively investing hundreds of billions of dollars in infrastructure. Rapid technological change may shorten the economic life of AI servers and GPUs, increasing depreciation and replacement costs. The long-term profitability of AI will depend not only on demand growth but also on whether companies can justify the enormous ongoing capital requirements. The eye-watering capital expenditure plans of Big Tech has been one of the year’s biggest stories.  Google, Meta, Amazon, and...