Big tech’s capex splurge may be irrationally exuberant

The tech firms are not only buying infrastructure. In the past few years they have joined a stampede to put venture capital (VC) into OpenAI, Anthropic and other makers of foundational models. Traditional VC firms bellyache that they have not seen such corporate big-footing since the dotcom boom. The tech giants are flush with cash—they can afford to splash out. But, if the past is any guide, a bust is coming and the firms carry such weight in the stockmarket that, should their overexcitement lead to overcapacity, the consequences would be huge.