Gary Marcus calls Big Tech AI spending greatest capital misallocation in history

2 articles · Updated · MarketWatch · Apr 30

After earnings, projected 2026 AI capex rose to about $700bn across Microsoft, Alphabet, Meta and Amazon, up from roughly $650bn flagged last quarter.
Marcus said the companies lack major AI profits or durable moats, while executives cited capacity constraints and pricier memory chips as drivers of heavier spending.
The outlays are squeezing free cash flow, prompting debt issuance such as Meta's planned $20bn-$25bn bond sale, while analysts demand faster revenue growth and clearer returns.

Is Big Tech’s $700B AI spend the next revolution or history's greatest bubble?

With AI models becoming commodities, is this spending building a lasting moat or a bridge to nowhere?