Substantial capital expenditure (CapEx) by Big Tech is shaping up to be a key theme of 2025 thus far. Alphabet (GOOG, GOOGL), for example, announced plans to expand its CapEx spending target to $75 billion. Futurum CEO Daniel Newman joins "Market Domination" to discuss CapEx spending this year, emphasizing that there’s little sign of slowing down, as companies are entering a new era of artificial intelligence (AI) in which they must invest in building infrastructure to support large-scale workloads. While some people thought the emergence of DeepSeek’s cost-effective AI model marked the end of Big Tech’s massive CapEx spending, Newman notes that "the people that are really in the know realize it’s the beginning." "That’s why none of the forecasts, whether it’s been Meta (META), whether it’s been Microsoft (MSFT), whether it’s been Alphabet — all of them have really stood by their expectations to invest," he adds. Newman highlights that, while ROI in AI is still developing, the key to success will lie in scaling AI applications to drive consumption. "I would estimate we’re at about 1% deployment of the potential of AI, and we have hundreds — if not thousands — of orders of magnitude more AI to do," Newman says.
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