Ahmad Al-Dahle argues AI capex is both short on compute and overbuilt
Original titleIt's earnings season, so the bubble discourse is back. Two things are true at once: we don't have enough compute, and we're overbuilding ...
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Ahmad Al-Dahle argues that AI infrastructure faces both a compute shortage and overbuilding, with the four largest hyperscalers planning roughly $725 billion of capex in 2026, up 77 percent from last year.
He describes a "mutually assured construction" dynamic in which every well-capitalized player buys the same insurance against falling behind, so the industry overbuilds by construction.
Source: Ahmad Al-Dahle · x.comPublished · added here