Big Tech is spending billions on AI infrastructure like it's a railroad, but investors are punishing them for it. Here is the math behind the panic.
During the Industrial Revolution, a railroad tycoon could lay a track and watch it print money for fifty years. A steel rail was a permanent asset. It didn’t rot. It didn’t ask for an upgrade.Big Tech is currently pouring nearly $700 billion into AI infrastructure while pretending they are building railroads. They aren’t.