|
|
The Last Page.
The last page, first.
|
|
How Big Tech’s $700 Billion AI Bet Ends
Wall Street punished Alphabet and Amazon on Thursday for what they spend on AI. The companies say the money is already coming back, and their critics say the first bill just came due.
|
|
A free guide on protecting your retirement savings if a recession hits, from Priority Gold, a precious-metals dealer:
|
And It’s Already Sending Shockwaves
The same Jamie Dimon who saw 2008 coming. The same man whose entire job is to NOT scare markets.
Central banks are now buying one specific asset at the fastest pace in 50 years. JP Morgan forecasts it could hit $8,000.
The clock is ticking.
This is an advertisement.
|
|
|
The story
Alphabet, the company behind Google, fell about 13% on Thursday. Its worst day since it went public in 2004. Almost half a trillion dollars of value, gone in one day.
The trigger was the spending. In three months Alphabet put more than twice as much into data centers and equipment as a year earlier. For the second quarter running, it spent more cash than the business brought in.
After the market closed, Amazon showed the same habit at a bigger size. $77 billion in a single quarter, mostly for AI.
It also took on $48 billion of new long-term debt in those same three months. Its shares slid in late trading.
Every one of those dollars lands somewhere: chips, buildings and the power to run them.
|
|
Some of that money goes to power, and you can own a piece of it from $1,000. American PowerGen, a Texas company developing gas power projects for data centers, sells shares to the public until Nov. 19:
|
A data center can be built while its power supply is still being prepared. Land, gas supply, permits and finished grid studies make a power project more attractive to a buyer.
American PowerGen is building a lineup of those projects in Texas: 16 planned natural gas power projects, about 22 gigawatts in total. It handles land, permits, engineering and grid studies, then aims to sell the projects to large buyers or build them with partners.
The current round closes November 19 at 11:59 p.m. EST. |
Securities are being offered pursuant to Regulation Crowdfunding through DealMaker Securities LLC. Please review the offering materials, including the Form C, before investing at invest.americanpowergen.com.
|
|
|
$51 billion
What Alphabet spent on data centers and equipment in three months. A year earlier it was $24 billion.
|
|
$700 billion+
What Alphabet, Amazon, Microsoft and Meta plan to spend this year. About $2 billion a day.
|
|
40%
The share of the S&P 500 in its 10 biggest companies. All four spenders are on that list.
|
|
|
That last number makes this your story too. If you own an index fund, you are in this bet whether you picked it or not.
The companies point to their cloud businesses, where they rent out computing power for AI. Amazon’s CEO, Andy Jassy, said Thursday he expects that business to grow more than 40% in both 2027 and 2028.
Some on Wall Street agree. Angelo Zino of the research firm CFRA said Alphabet’s drop “probably represents a buying opportunity.”
The skeptics read the same numbers as a warning. Michael Burry, the investor made famous by The Big Short, wrote about the motive this month. In his view, the giants spend this freely because they expect to be treated as too big to fail.
Then there is Google search, the business that pays most of the bills. Its sales grew 12%, down from 17% the quarter before. Jeffrey Wlodarczak of Pivotal Research summed up what the pessimists argue: AI may now be “starting to seriously hurt” search.
|
|
A day like Thursday shows how much of a retirement can ride on a handful of stocks. Priority Gold, the dealer above, offers a free kit on moving part of your retirement into physical gold:
|
They’re not.
They happen quietly, before the headlines catch up.
Right now, one of those shifts is already underway:
Central banks around the world are increasing their gold reserves, while reducing reliance on paper currencies.
That should tell you everything.
Because these are the same institutions that understand the risks better than anyone.
And they’re not guessing. They’re positioning.
Meanwhile, most retirement accounts remain fully exposed to:
| Stocks | | Bonds | | And the long-term strength of the dollar |
|
But here’s the reality:
And the policies driving that trend haven’t stopped. They’ve accelerated.
That’s why more Americans are making a simple move:
Shifting a portion of their retirement into physical gold.
Not for speculation. For protection.
Learn how to reposition part of your savings, without taxes or penalties.
Because the shift is already happening.
The only question is whether you move before it becomes obvious.
This is an advertisement.
|
|
|
If cloud sales keep climbing
Our best-case projection: August 2027
|
If AI customers cut back
Our worst-case projection: May 2027
|
|
|
Best case
AUGUST 2027. Amazon’s cloud grew faster than 40% in every report this year, as Jassy said it would. Google’s kept climbing from a much bigger base.
The data centers that looked reckless last fall are full. Customers rent the computing power on contracts that run for years, and the rent comes in every month.
Spending kept rising, but sales rose faster. By spring Alphabet’s business covered its building bill again, and the stock has made back October’s drop.
Your index fund rode the biggest names, and this time it paid. They did most of the lifting on your 401(k) statement again.
Thursday’s 13% drop is now a footnote in the annual reports.
|
|
Worst case
|
MAY 2027. Cloud growth peaked over the winter. Amazon came in short of its 40%, and the other clouds slowed with it. Customers signed up for less computing power than the new buildings could supply.
In February two of the four giants cut their spending plans. The chipmakers and power developers that sold to them lost their biggest customers in a single season.
Search kept slipping as more people asked a chatbot instead of typing into Google. Alphabet still trades below its October low.
The 10 biggest companies fell together, and they were 40% of the index. Your 401(k) statement shows exactly how much of it you owned.
The buildings still stand. Some half empty, lights on, meters running.
|
|
|
How it ends
You get a slow payoff with more days like Thursday, unless cloud sales stop outrunning the spending.
Customers are already paying for AI, and it shows in sales. Google’s cloud grew 103% from a year ago. Microsoft’s Azure grew 48%, faster than forecast, and Amazon’s grew 39%.
Investors now grade the giants on how much cash they keep. Microsoft’s business still brought in about $19 billion more than it spent on building, and its stock ended the day about flat.
Your index fund owns both sides of the bet: the giants that spend and the chipmakers, builders and power companies they pay. If the payoff comes, you collect twice. If it stalls, you lose twice, because the giants’ spending is the suppliers’ sales.
The internet cable laid in the dot-com boom did get used in the end. It took most of a decade, and many of the companies that laid it went bankrupt first.
|
|
|
Amazon’s cloud growth in its next report, due in early February. It ran at 39% this quarter, and Jassy expects more than 40% in 2027. Above 40%, the best case is on track, and below 35% the worst case is in play.
|
|
|
Before you go
|
|
You have until November 19 at 11:59 p.m. EST to invest in this round.
Securities are being offered pursuant to Regulation Crowdfunding through DealMaker Securities LLC. Please review the offering materials, including the Form C, before investing at invest.americanpowergen.com.
|
|
|
Each weekday, one story taken to its end. If that is no longer for you, the button below takes you off the list.
|
|
The Last Page.
The last page, first. Reply and name the story you want finished.
|
|
Priority Gold: Priority Gold endeavors to provide the most accurate useful information and helpful advice to the audience at its best. But there is no 100% guarantees of completeness, accuracy, usefulness or timeliness in or about the content. Any advice offered by Priority Gold are just our opinions and not to be relied on by anyone or any purpose. Seek your own legal, financial, tax, investment, and advice before opening an account with Priority Gold. All decisions regarding the purchase or sale of precious metals are solely at your decision only. Copyright © 2026 Priority Gold. All Rights Reserved.
|
|
|
