Episode Details

AI CapEx is projected to hit $725B this year, up 77% from $410B, as the Iran war pressures the global economy, with AI/tech and oil and gas outperforming while other sectors struggle. Saudi Aramco warns gas and jet fuel stockpiles could reach critically low levels if the Strait of Hormuz can’t reopen, and the New York Fed’s Global Supply Chain Pressure Index is at its highest since COVID-era peaks. All while Google surges, Meta falters, and Microsoft tests out usage based pricing under margin pressure. Meanwhile, OpenAI’s woes multiply under the weight of an astounding burn rate and an inability to close financing for a critical AI chip deal with Broadcom. Where does all the spending take us in the end? 

CHAPTERS

00:00 AI CapEx hits $725B and why it should concern investors

00:35 How the Iran war is reshaping global sector performance

01:16 Global Supply Chain Pressure Index reaches post-COVID peak

02:20 Big Tech CapEx breakdown 14 Meta, Microsoft, Alphabet, Amazon

02:43 Google Cloud wins the quarter with 63% revenue growth

03:00 Microsoft shifts to usage-based pricing under margin pressure

04:13 Why Meta's CapEx spending is alarming investors

05:05 OpenAI's $18B financing deal is stalling

05:28 Missed growth targets and a $115B projected burn at OpenAI

06:00 OpenAI's IPO ambitions versus the CFO's concerns

06:23 Musk vs. Altman trial 14 Satya Nadella testifies

07:13 Microsoft's $13B investment in OpenAI and the nonprofit dispute

08:03 What Elon Musk is actually asking the court for

08:44 Apple's AI strategy and the new CEO's biggest question

09:18 Apple closes a chip deal with Intel

09:42 Why the U.S. government owns 10% of Intel

IF YOU LIKED THIS, WATCH:

→ Record High Gas Prices Thanks to Iran War, Plus UAE Leaves OPEC: https://youtu.be/SAJUfTa30sA

→ Elon Musk Just Exposed OpenAI's Biggest Secret in Court: https://youtu.be/b5Ye6iYzM6E 

→ What’s Apple Going to Do About AI? https://youtu.be/EQEzwYxllLQ 

SOURCES & FURTHER READING

Global Supply Chain Stress Signals

• Global supply chains hit worst disruption levels since Covid shock data shows: https://www.newyorkfed.org/research/policy/gscpi#/interactive

AI Spending Boom And Big Tech Capex

• AI spending explosion revealed as Big Tech races toward 725 billion hyperscaler capex surge: https://finance.yahoo.com/markets/article/magnificent-7-earnings-rush-reveals-ai-spending-surge-with-hyperscaler-capex-set-to-reach-725-billion-in-2026-224901707.html
• Big Tech AI boom could push capital expenditures past 1 trillion by 2027: https://www.cnbc.com/2026/04/30/ai-boom-big-tech-capital-expenditures-now-seen-topping-1-trillion-in-2027-.html

Cloud Profits And AI Cost Pressures

• Microsoft cloud margins squeezed as AI demand surges and pricing shifts begin: https://thein.fo/3Pba385
• AI costs reshape Big Tech profitability and force strategic pricing changes: https://www.ft.com/content/2138e81c-4d86-46f4-8ca0-287f8b737cdf?syn-25a6b1a6=1

AI Chips And Infrastructure Race

• OpenAI seeks 18 billion in funding to dominate next generation AI chip race: https://finance.yahoo.com/sectors/technology/articles/openai-18-billion-chip-financing-190457172.html
• Apple and Intel move toward major chipmaking deal to secure AI future: https://www.wsj.com/tech/apple-intel-have-reached-preliminary-chip-making-agreement-69eb9370?mod=hp_lead_pos2
• AI chip boom turns unexpected companies into breakout tech stock winners: https://www