CapEx

“Honestly, CapEx is the most important cost metric when it comes to backup systems, because they're not used very often. You don't care that the fuel is more expensive. It's really about how cheap is your generator, and diesel is by far the cheapest solution ou…”

“In this quarter, they decided that they were going to basically change the way that they account for their data center leases. And so historically they've actually Considered them to be 15 years. And that basically meant that they were you know, taking on the …”

“If you kind of think about those dollars of CapEx, the only possible way to pay those dollars back is going to be AGI.”

“The current status quo of we're spending two hundred billion dollars a year on CapEx. And, you know, yes, we're renting our GPUs, so revenue is accelerating, but fundamentally there's no There's not a new business line coming out of it. That is not sustainable…”

“Apple is the one, by the way, with the do nothing strategy. Like you gotta look at Apple and say, wow, like there's some chance that Apple just comes out looking like a genius on this. Like if it does commoditize, Apple's not spending money on CapEx.”

“So this is the irony of it all, that we're, the trillion dollars of CapEx this year, and the 10 trillion over the next five years that are coming, Is to move data centimeters and millimeters. That's AI.”

“I mean, you've gone from two hundred billion in capex four years ago to six hundred billion in capex, which means someone is pocketing four hundred billion dollars a year.”

“If I take all the verbal promises, and if you say there's a 125 gigawatts of AI data centers that are going to come online in the next two to three years, that's the eight to 12 trillion of CapEx in total. Not in one year, in total. That is where I come to. I …”

“Over the next couple of years, we've got like a trillion or two trillion dollars of capex coming down the pipe, and the models get a hundred x, 200 x, if it's more efficient every year.”

“Microsoft, Meta, and Google are all on, in line to spend over 50% of revenue on CapEx this year.”

“The cumulative capex of all these MAG companies in their history is one and a half trillion dollars. Think about it. Now they're talking about three trillion in just three years.”

“These same companies are doubling down on CapEx, letting it grow 50, 60%, such that CapEx is now eating most of their free cash flow.”

“Every dollar of revenue that Antropic does means someone, either Antropic or its partners, has to invest three or four x in CapEx because it's just expensive in terms of compute to service AI.”

“I think that it's a reasonable assumption to make that they're going to start spending more on capex too. Even if they're not going to train models, they're not going to train an LLM inference and doing other things that you need to do.”

“And the capital intensity for every dollar of run rate revenue, it probably takes four or five dollars of CapEx to support that, right?”

“You could kind of say, rule of thumb, one gigawatt data center, or per gigawatt, you have to spend about fifty billion dollars of capex.”

“Look, I think, you know, we probably have scaled our capex from thirty billion to a hundred and approximately a hundred and eighty billion.”

“When I tell you that the CapEx number, so the total investment in these projects, was a hundred and twenty billion in twenty-twenty-five, the total financing number is actually north of 200, because some amount of the capital that came in later takes out earli…”

“AI Moving at warp speed, involving a greater CapEx program than has ever happened before outside of war.”

“Whenever we build a new project, we do not like to put capital in the ground unless we lock in our CapEx contract, our off-take contract, our EPC contract, and our financing contract all at once.”

“Like the big four platform companies spent Four hundred billion dollars on CapEx last year, and they've announced something in the region of six hundred and fifty billion dollars this year, maybe more.”

“Every time venture cap, every time venture capital gets easy, people take or take risk with companies that are less of a great fit for the venture capital model. And when I say a great fit, like they're either heavy capex or they have low gross margins. They r…”

“The irony of all this is kind of plays to Apple's hands in a weird way, right? Like I have to say I am a perennial Apple hater. I love how little they're spending on CapEx. I think it's the greatest thing ever.”

“So relative to the dot com, CapEx is actually supported by cash flows, and CapEx as a percentage of revenue Is considerably lower.”

“The company said it expected to spend between a hundred and seventy-five billion and a hundred and eighty-five billion in capex in twenty-twenty-six up from ninety-one billion to ninety-three billion in twenty-twenty-five.”

“Hyperscalers capex is going to be like five hundred billion dollars this year or something like this.”

“This is probably not the peak. Like, most of the estimates based on what companies themselves are saying for their estimated CapEx have a higher number for next year, right?”

“When I think about the scale of the CapEx right now, which is Probably about four hundred billion a year, according to I think an estimate from Bain. We're at no, no question at like the biggest investment in, in fixed capital that we've seen since the buildin…”

“In 2023, their total capex was one hundred and fifty six billion. And this year it's three hundred and seventy nine billion.”

“If you add them all up, it looks like to me, OpenAI would be on the hook for like a hundred and fifty billion of CapEx in 2030.”

“If you thought of it as a CapEx decision, if you're going to hire someone for a hundred grand, right, a year, and you think the, you know, discount the value of that, like, you know, it's a million dollar investment that you're making in that person.”

“Apple spending something like 10 to 20% of income on this capex. Everyone else is like well north of 50.”

“When they were all SaaS recurring revenue businesses, all seat based, all 90%, 80% gross margin with no CapEx, Right? All enterprise sales with low churn. It absolutely made sense. You could compare two companies, and that's why by 2019 or 20, it almost felt l…”

“The CapEx will be overbuilt. Infrastructure, highways, all these things, you ultimately in a CapEx cycle, you just don't know if today you're in the third inning or eighth inning.”

“Microsoft CapEx as a percentage of revenue has crept up to 25%.”

“The hyperscalers still can grow capex 20, 30% next year, right, from what they're doing this year.”

“Not a hundred percent of tech spend is AI. A lot of it is maintenance CapEx and expansion CapEx and, you know, the catch up for spending that's been deferred because of COVID, et cetera.”

“We're essentially looking at decreasing our overall efficiency, but ideally to be able to massively decrease capex.”

“So the amount of compute required to serve all these new applications is going to be massive, which is why I think the CapEx build out actually makes sense.”

“The reflexivity already starts to take place, everything you just described. And once it does, some of it is certainly self-reinforcing, so you start decommitting capex, you start decommitting you know, basic capacity on different manufacturing lines, planes, …”

“If you are building a robot, it is still substituting CapEx for OpEx effectively, right? You're taking OpEx, which is human labor costs out of the equation for some number of years, and you're investing a big chunk of CapEx up front to in order to do so in, in…”

“Microsoft, I think, is spending 80% of their free cash flow, right, on CapEx.”

“We're in the middle of project financing about nine billion dollars of capex right now.”

“And we know that in total, 20, 25 CapEx for the top five players in the US is going to be three hundred and twelve billion, right?”

“In their most recent quarter, they did about twenty billion in capex bill, and you just, you know, he said earlier in the year, which caused, or a couple of days ago, which caused a bit of a kerfuffle that they expected to spend eighty billion in capex this ye…”

“I think when you look at the streets estimates for capex, they're all far too low.”

“I think that will probably play out with the frontier models. We'll end up with a relatively small number of companies doing pre-training you know, which is the really capital intensive part of model building not because, you know, there's not, they're the onl…”

“If you look at the big four, they're gonna spend two hundred and twenty billion this year on CapEx, you know.”

“And really what investors are looking for is not that people can't transform their businesses, but that they do it in an incremental way, in a way where you take small steps, You make sure they work and you get better and better over time rather than I'm going…”

“And I think in their last earnings call, they said it's about 500 K to Put the robot in. So you put an extra 500 K to build the store. But again, this is 500 K of CapEx, which means you can depreciate it, which is good for your, you know, tax purposes and what…”

“The utility business model of compensating CapEx spending with maybe a seven to nine percent margin and passing through OPEX at cost to the consumer does not give utilities the right incentives to choose low-cost options such as VPPs”

“Nvidia only has a billion dollars of capex per year.”

“I try to buy businesses, non-financial, regular businesses at 10 times EBIT.less CapEx.”

“I think it's pretty much bottomed out. I think we've pretty much taken most of the OPEX, or rather, most of the CAPEX involved in starting a business making an OPEX. I'm not sure it goes down much from here, because now you're down to people costs, And real es…”