Generative AI bear Gary Marcus called the AI capex boom the “greatest capital misallocation in history.” Goldman Sachs analyst Eric Sheridan reaches the opposite conclusion in his “AI in a Bubble?” research package. Sheridan argues that this is not a hope-and-hype cycle like 1999 but a scale and monetization cycle, with tangible revenue growth and extraordinary market momentum.
So, who’s right? Jobs, pensions, and trillions of stock-market dollars, are at stake with implications for all of us.
I focus on Amazon Web Services (AWS) as the most informative window into the broader conundrum: it is the largest of the cloud businesses, the one with the cleanest revenue disclosure, and the one whose CEO has put the most…
https://www.geekwire.com/2026/opinion-the-ai-capex-conundrum/
