New Models Are Accelerating AI Spending
menhguin · x · 2026-07-19
The author believes their previous "bear case" has been invalidated by recent model releases: new models continue to unlock novel use cases and seem to be driving revenue (ARR) faster than expected.
They further conclude that the latest generation of models is accelerating enterprise and market spending, rather than rapidly squeezing demand as previously feared. Therefore, they now view the capital expenditures of the Mag 7 as much more justifiable.
Related event: New AI Models Accelerate Market Spending as Cloud Providers Consolidate(3 posts)→
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