Investors React Positively to Meta’s Plan to Increase AI Capex
Investors are responding positively to Meta’s decision to keep increasing artificial intelligence spending, even as fears grow that the AI boom could be inflating a bubble. While concerns about a potential bust are becoming more common, Meta’s latest earnings suggest that, for now, the market is still willing to back heavy investment, particularly when it produces clear financial results. Those fears are not unfounded. A growing share of AI spending is circular in nature, and the circular investment nature among companies involved in AI has raised concerns about artificial demand propping up valuations. Large tech companies are buying chips, cloud capacity, and services from the same small group of firms…
