'ZERO SUM GAME': Expert warns of 'BREAKING POINT' if tech companies keep doing this

追加: 2026-05-05

[00:00:00]I see just a tiny bit of green for the Dow. It's up 20. Very little movement in the S&P and the Nasdaq. Jeff Seeker with me this morning. We got big tech earnings on deck this week. We're going to find out if all that money we've spent on AI is producing some actual results. How do you think it's going to go?

[00:00:16]>> Well, like you said earlier, Stuart, this week is all about big tech earnings. And they refer to these big tech that are reporting this week as the hyperscalers because they have hyperactively spent money on AI infrastructure in order to compete with each other. So you're talking about just this quarter alone these big these hyperscalers have spent upwards of 700 billion dollar and in some cases they've spent up to 100% of operating income on AI. So, and a lot of them are showing results. Amazon, AWS should do 700 billion in revenue as a result of it, you know. So, AI is helping, but they have pushed all of their chips to the middle of the table when it comes to AI.

[00:01:06]Now, I have two questions for these companies. Number one, are you going to spend more or less next quarter? And number two, show us how your cap this capital massive capital spending is translating to revenue. And until we see that, I believe the bet is going to pay off in the long term. But until we see that, there will be this lag time be be when they spend the money and when they realize the revenue and earnings from the money. And the problem is that if they keep trying to outspend each other, this is going to come to a breaking point and and it's going to put us in a position where it becomes a zero sum game. They've spent so much I mean a 100% of operating revenue, operating income on AI capital spending.

[00:02:03]And now you've got three IPOs coming >> uh which will require something like three trillion dollars, right? Where's that gonna come from?

[00:02:12]>> Well, I mean, see what what I see happening is they have been and will probably continue to be the only show in town. So there is still a lot of liquidity chasing these and we've seen the we've seen the signs of a bubble where anytime you attach AI to anything.

[00:02:31]If you if you come out and say my coffee shop is now an AI company, you're going to be worth a billion dollars in a couple weeks. So that that hype has got to some I mean I believe bubbles have a tendency to become bigger bubbles but I think it's we have to be responsible and say we have gotten to the point where this is this is unsustainable.

[00:02:55]>> Jeff Sea sounding a little anxious on a Monday morning. Aren't you? Good stuff.

[00:03:00]See you again soon Jeff. I