AI capex could hit $1.6 trillion next year, says fund manager who sees more echoes of 1998 than the dot-com bust

A fund manager estimates that AI capex could reach $1.6 trillion next year, noting historical parallels to 1998 and the dot-com bust. However, the fund manager also believes that hyperscalers are in a strong position to finance their investments while expecting high returns and short payback schedules.