AI Compute Infrastructure CAPEX Will Continue to Grow
ericjang11 · x · 2026-07-19
Contrary to the view that declining profit margins for frontier models will dampen capital expenditure (CAPEX), the author argues otherwise. As long as AI capabilities continue to improve, CAPEX demand will grow in tandem, regardless of whether the technological gap is leading or trailing by 6-12 months. Although current memory shortages and rising supply chain prices have squeezed margins, they have not prevented the accelerated expansion of compute infrastructure.
More from Infra
- LLM Serving Metrics Thread: Why TPOT and Uptime Make or Break User Experience — abhijithneil · 2026-09-11
- PlanetScale launches sharded Postgres: 768 servers acting as one, 1PB scale — dhruv2038 · 2026-09-11
- Can a 7900 XTX 24GB run Qwen locally? Reddit seeks ROCm tok/s benchmarks — thenomadexplorerlife · 2026-09-11
- RTK Terminal Compression Cuts Tokens but Leaves Your AI Coding Bill Unchanged — Bartaseth · 2026-09-11
- SF Compute founder: buying compute is 'an absolutely awful experience' right now — IgorCarron · 2026-09-11
- SmolVM open-sources persistent computer infrastructure for agents that outlive chat sessions — aniketmaurya · 2026-09-11