Drudge Retort: The Other Side of the News
Thursday, June 11, 2026

AI capex now represents about 5% of US GDP, a level last seen during the late-1990s technology boom.

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The composition is different from the late-1990s cycle in one important respect: today's AI capex is concentrated among five companies (Microsoft, Alphabet, Meta, Amazon, plus Apple at smaller scale), all of which are profitable, cash-generating businesses. The 1990s telecom buildout was distributed across dozens of carriers, many of which were operating at a loss and financing capex with debt that ultimately defaulted.

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Will corporate CapEx (Capital Expenditure, a.k.a. infrastucture) spending result in enough profits to offset that spending?

Oracle investors seem to have an opinion ...

Stock Market Today, June 11: Oracle Falls After AI Spending Guidance Sparks Cash Flow Concerns
finance.yahoo.com

... Oracle (NYSE:ORCL), an enterprise software and cloud services provider, closed Thursday at $184.10, down 8.53%.

The stock dropped after its fiscal Q4 earnings beat was overshadowed by guidance for sharply higher AI-related capital spending and negative free cash flow. ...


#1 | Posted by LampLighter at 2026-06-11 08:41 PM | Reply

Meanwhile, rural America seems to be turning against data centers ...

Nebraska County Bans Data Centers For Up To A Year
www.gadgetreview.com

... Otoe County suspends permits for up to a year after Google-Tenaska project would need 1,000-3,000 megawatts of power ...

#2 | Posted by LampLighter at 2026-06-11 08:44 PM | Reply

Mississippi Residents Sue xAI Over 'Near Constant Noise' From Data Centers
www.pcmag.com

... The gas turbines at data centers run by Elon Musk's xAI are so loud that it's like being around a 'jet engine' at all times of the day, the lawsuit claims. ...

#3 | Posted by LampLighter at 2026-06-11 08:45 PM | Reply

'The Most Bipartisan Issue Since Beer': Opposition to Data Centers
www.nytimes.com

#4 | Posted by LampLighter at 2026-06-11 09:44 PM | Reply

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