Veteran Macro Investor Says AI’s Easy Money Is Over and Bitcoin Is Next
Veteran macro investor Jordi Visser says the easy money in artificial intelligence (AI) is gone. He thinks Bitcoin (BTC) is where the next big gains turn up.
New company filings help explain why. The biggest AI spenders are now burning cash faster than they bring it in.
Big Tech Is Burning Cash to Build AI
Google spent more cash last quarter than it collected. That has never happened since the company listed in 2004.
The measure that matters here is free cash flow. It is simply the money left over after a company pays for the data centers it is building.
All three of the biggest AI spenders saw that cushion shrink.
| Company | Cash left over, April to June | Same quarter last year |
|---|---|---|
| Microsoft | $19.6 billion | $25.6 billion |
| Meta | $784 million | $8.5 billion |
| Alphabet | Negative $5.9 billion | Positive $5.3 billion |
Meta's drop is the eye-catching one. A year ago it kept $8.5 billion. This time it kept $784 million.
Its own release shows why. Sales rose 28%. Costs rose 55%. Meta then borrowed $24.91 billion to keep building. It spent $31.08 billion on new capacity in three months.
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