$GXO

AI Is Not Overvalued. It Is Underestimated.

Markets debate whether artificial intelligence (AI) is overvalued. Shayne Heffernan argues the more material risk is underestimation. Alphabet's capital expenditure reached $51.4 billion in the third quarter, Google Cloud revenue rose 103% to $30.7 billion and the Cloud backlog stands at $561 billion, per its 28 October results and earnings call. Jurisdictions that block data centres do not remove the demand: they import the capability later, at a higher price.