Public Event Detail
Why the AI capex cycle is built to persist
Public historical observation from the Merrowstone archive. This page shows event-level context only. Accepted assertions, evidence lineage, and relationship intelligence remain part of the premium research layer.
Event summary
This article argues that the current AI capital expenditure (capex) cycle is not a temporary boom but a persistent competitive equilibrium driven by competitive dynamics, supply constraints, and the economics of scale. Hyperscalers face a binary choice to invest aggressively or fall behind, and supply expansion has not collapsed prices due to resilient demand and physical limitations. The author suggests this cycle could continue for two to three more years, with long-term value creation hinging on the durability of scaling laws and the eventual monetization of AI benefits.