Morgan Stanley CEO: AI Capital Expenditure Could Reach $10-15 Trillion Over the Next Decade
Morgan Stanley CEO Ted Pick expects that AI capital expenditure could reach $10 trillion to $15 trillion over the next decade, with large tech hyperscalers potentially investing $800 billion to $1 trillion annually over the next 7 to 12 years. He said that $2 trillion to $3 trillion in funding has already been committed or deployed, and noted that the industry is still in the early stage of "the second inning of a nine-inning game."
Body · AI translation
Article body
Morgan Stanley CEO Ted Pick said capital expenditure in the field of artificial intelligence (AI) over the next decade could reach $10 trillion to $15 trillion, further cementing the technology's position as the most significant economic transformative force since the birth of the internet. Speaking of the scale of investment in data centers and computing power, Pick estimated that over the next 7 to 12 years, large tech hyperscalers could invest $800 billion to $1 trillion annually. Although Wall Street has persistently questioned whether the massive cloud computing spending can achieve profitability in the near term, Pick believes these investments are still at an early stage.
"We are probably in about the second inning of a nine-inning game right now," Pick said. "$10 trillion to $15 trillion, that range is indeed very large, but if you consider building this infrastructure and pushing products forward, this figure is not unreasonable." Pick also weighed the projected scale of this spending against stock valuations. He noted that although the eventual $10 trillion to $15 trillion investment is considerable, it still needs to be viewed in the context of the S&P 500's total market capitalization of about $70 trillion. He also said that $2 trillion to $3 trillion in funds have already been committed or deployed.
(Source: Cailian Press) Mid-article embedded advertisement