AI capex boom by Big Tech may pay off; markets haven't priced in the ROI yet

Executives from Alphabet, Tesla, IBM, AMD and Mastercard defend surging AI-related capex as the infrastructure for monetizing AI and boosting productivity, arguing returns will show up even as shares in big tech stumble. Alphabet's Q2 capex hit about $44.9 billion with 2027 guidance raised; Tesla plans roughly $25 billion in 2026; IBM cites AI infrastructure spending as a pathway to future value. The piece contends the AI spend is a long-run bet that should pay off within about 24 months as use cases monetize and scale, despite near-term market skepticism.