Opinion: The AI capex conundrum

Amazon CEO Andy Jassy at AWS re:Invent in 2025. (GeekWire File Photo) Generative AI bear Gary Marcus called the AI capex boom the “greatest capital misallocation in history.” Goldman Sachs analyst Eric Sheridan reaches the opposite conclusion in his “AI in a Bubble?” research package . Sheridan argues that this is not a hope-and-hype cycle like 1999 but a scale and monetization cycle, with tangible revenue growth and extraordinary market momentum.