$666bn For GPUs, $250bn For Cures: Welcome To Peak AI Insanity

Capex mania

The largest cloud/AI hyperscalers (Amazon, Microsoft, Google, Meta) are now projected to spend over USD 660 billion on capital expenditures in 2026 (we added a few billions for effect to get to the 666 number of the beast... but we are pretty confident that that number will be exceeded very shortly). By contrast, global pharmaceutical R&D spend is significantly smaller, in the order of $250-280 billion per year. So we are spending 3x the money to improve the Instagram algo and your online shopping experience than we do to cure cancer. Let's have a look at the ever expanding capex numbers and have equities and credit have started to notice.