AI capex spending appears inflated in nominal terms because hardware prices (especially memory chips) have increased 4-5x in recent years; when Google spends $100 billion in 2027 for AI infrastructure, the equivalent purchasing power is similar to $20-25 billion five or six years ago, meaning real capex intensity is lower than headline numbers suggest.
causalpending
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Monish PabraiEvidence Quote
“When Google spends a hundred billion, for example, in 2027, that's like the equivalent of spending 20 billion five or six years ago. That's how much the prices of what they are buying has gone up.”
Created: 8/12/2026, 6:21:10 PM
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