The climate is changing! AI giants are being drained of 1.5 trillion yuan

▤ Summary

This article analyzes how massive AI infrastructure spending is reshaping valuations across cloud and chip companies. It argues that hyperscalers like Microsoft, Amazon, Google, and Meta are still pouring money into AI infrastructure even as chip and packaging costs rise sharply. The piece highlights that a large share of incremental capex is flowing into GPUs, memory, and advanced packaging, which is squeezing cloud providers’ margins. It also points to large remaining performance obligations as evidence that demand remains strong, even while stock prices and investor sentiment swing sharply. The core message is that AI infrastructure spending is still expanding, but the economics are becoming more expensive and more difficult to justify.

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