Money a company spends on long-term AI assets, like data centers and GPUs.
It is like building a huge factory before you get any orders. The machines cost a fortune. The money comes back later.
Tech companies use it to build AI data centers and buy GPUs. It can also put pressure on their cash.
AI data center
AI Capex often pays to build or expand AI data centers.
GPU
GPUs are a major hardware purchase in AI Capex.
AI Infrastructure Inflation
Big AI build-outs can raise infrastructure costs.
AI debt financing
Huge AI projects may use borrowed money.