Hedge fund manager Gavin Baker says investors have been too quick to judge Big Tech's AI spending
Hedge fund manager Gavin Baker argues that investor skepticism regarding Big Tech's massive AI infrastructure spending is misplaced. He suggests that improving cash flows and sustained demand for computing power indicate that these investments are beginning to yield returns.
Why it matters
It provides a counter-narrative to market fears about the 'AI bubble' by focusing on long-term infrastructure monetization.
Traders work on the floor of the New York Stock Exchange in New York. NYSE Gavin Baker of Atreides Management says Big Tech's capex spending is beginning to pay off. In July, investors worried about massive AI infrastructure spending sold off memory and chip stocks. Baker said AI companies are starting to show improved cash flow while demand for AI remains strong. Hedge fund manager Gavin Baker, who famously invested early in SpaceX, says investors have been too quick to judge how much Big Tech is spending on AI infrastructure . Baker, speaking on the "Invest Like The Best" podcast, said improving cash flow, continued demand for AI, and underpriced compute contracts are all reasons investors should worry less about Big Tech's eye-popping spending.
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