Hyperscalers are approaching $700 billion in AI spending in 2026, which can continue to increase in the years ahead.
While some investors are concerned about how long it will take for these investments to yield profits, Bill Ackman threw his hat into the ring as a tech bull
An X post from the billionaire investor detailed a bullish thesis that assumes token costs will become more affordable. If that happens, it can further justify high capital expenditures and translate into higher profits for tech giants. Why token costs matter AI models like ChatGPT read text prompts as tokens.
These tokens are also generated when users ask AI models to create images, videos, and other media. Each token requires some electricity to be produced. A cloud company like Amazon will buy Nvidia chips that can produce the tokens.