AI: BlackRock says we haven't overspent yet (for now)

Many of us see AI as a bottomless money pit, with companies pouring billions in daily. We expect that, sooner or later, someone will wake up and say, "Oops, maybe we overdid it."

Instead, according to BlackRock, one of the world's largest asset managers, we haven't hit that point yet. Helen Jewell, their International CIO for fundamental equities, stated on Bloomberg Television that the AI capital expenditure cycle hasn't reached overspending. So, for now, the money keeps flowing without much worry.

If BlackRock is right, expect even more money and growth in this sector for quite some time. The next few years will be "very clear" from an AI investment perspective, as Helen Jewell predicted.

Every spending cycle, in any industry, eventually reaches a point of overspending, but for AI, we're not there yet. This means companies will continue to invest heavily in chips, data centers, and everything that powers artificial intelligence. Whether that's good news or just delaying the bubble, we'll find out soon enough.