So, the AI bubble drama is entering the home stretch.
By now, only a starry-eyed dreamer could fail to grasp what is happening with AI infrastructure investments.
What is happening? Let me tell you.
These are no longer investments — they are tribute. The “Magnificent 7 Stocks” are becoming hostages to sunk cost.
Amazon announces plans to spend $200B on capital expenditures in 2026. A year ago, the figure ($132B) already looked aggressive. Now it looks reckless.
Some might think this is a leap toward AI market dominance. But when you look at the free cash flow, the picture is turned on its head. This is a shift into territory where their math stops adding up.
Here are numbers anyone can verify. This matters, because I am certain that even inside Amazon there are clear-headed people. They know what lies ahead is not a stairway to heaven but a cliff edge. But there is nothing they can do about it.
So:
- $33B remained after capex in 2024.
- In 2025 — only $8B.
- With the announced $200B in spending, free cash…