Whatever you may think of Generative AI, the Capex craze is absolutely bonkers: “we are potentially talking about AI needing to generate $10…

Whatever you may think of Generative AI, the Capex craze is absolutely bonkers: “we are potentially talking about AI needing to generate 10 trillion in annual sales to justify all the capex being thrown at it. For reference, global spending on food (including restaurants) is around 10 trillion. Health care is about the same amount. The entire global software market is only 1.4 trillion.” 10 Trillion In Annual AI Revenue May Be Necessary To Monetize All The Capex Being Plowed Into Data Centers Hyperscaler capex is expected to reach 1 trillion in 2027, most of which will be AI-related. Let us assume that a capex bust is avoided and capital spending remains at 1 …

Source: Gary Marcus (X) | 2026-08-21