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The trillion-dollar question
Goldman Sachs (GS) released the report on June 25th titled: Gen AI - Too much spend, too little benefit. The abstract of the report starts with:
Tech giants and beyond are set
A Trillion-Dollar Question: What's The ROR On Gen AI Capex?
Summary
- The investment community is starting to question the profitability of Gen AI capex spending.
- The Gen AI related companies' executives have not addressed the issue of Gen AI capex ROR yet.
- Thus, I believe the Gen AI bubble is likely to burst, and with it cause a significant drawdown in the S&P 500.
Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.
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