AI is the first technology innovation since fiber to be highly capital-intensive, with big tech companies having shifted from 1/3 the capital intensity of traditional US industrial companies to 3x the capital intensity, creating risks where depreciation schedules (5-year vs 1-year Nvidia server lives) materially impact valuations and could result in massive losses if capex intensity proves unsustainable.

causalpending

Speaker

Dan Rasmussen

Evidence Quote

what's interesting about AI is that it's the first tech innovation that's capital intensive... these big tech companies have gone from having about a third of the capital intensity... to three times the capital intensity [50:53]

Source

The Bubble No One Can Sell | Dan Rasmussen on the Private Equity TrapExcess Returns
Created: 8/11/2026, 8:01:35 AM

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