The theory of bubbles occurs every year, and this year is especially intense. But when you see that the four giants plan to invest 1 trillion next year, you realize this is no longer a gamble; it's an arms race.

[ME AI]() News, billionaire investor and hedge fund founder Dan Loeb of Third Point stated on a podcast that concerns about an "AI bubble" in the current market are seriously exaggerated, and the development stage of the AI industry is completely different from the internet bubble era. Loeb pointed out that the combined capital expenditure of tech giants including Alphabet, Microsoft, Amazon, and Meta has exceeded $700 billion this year, potentially reaching $1 trillion next year, with the vast majority allocated to AI infrastructure development. He said that if one does not believe these capital expenditures can generate returns, it is equivalent to thinking companies are "wasting money," but currently, these companies are highly profitable, with ample cash flow, able to support investments through their own balance sheets. Loeb emphasized that this is different from the internet bubble era.