Big Tech earnings season and the capex spiral

Big Tech capex for AI data centres has surged to over $700 billion annually, but 20-30% of near-term spending increases reflect cost inflation rather than genuine capacity expansion as memory chip prices, power equipment, and construction materials become scarce. Morgan Stanley estimates gigawatt-scale AI capacity costs have risen 20%, with a common Nvidia setup climbing from $29 billion to $35 billion per gigawatt.

This Wire brief sits within Fusion42's coverage of AI Infrastructure and Semiconductors. Wire is Fusion42's founder-focused intelligence feed: each story is connected to the funds and startups it names — every one with a live profile on Raise or Scout — so founders can follow the capital and the momentum behind the headline rather than just the headline itself. Wire analysis is one of the live surfaces Arthur reasons over.