Yet, that’s another key point: capital is flowing in from many directions:
Enterprise customers: The Enterprise Customer is what starts the financing of a whole market. While consumer markets are appealing, the thing is, without a few major enterprise markets subsidizing a lot of these consumer markets, these would not exist in the first place!
Big Tech CapEx: Big Tech players, converting into Hyperscalers, have been investing massive amounts of their capital (pretty much cash sitting on their balance sheets) both in infrastructure, partnerships, and “acqui-hires.”
Public/Private Joint Ventures: Much capital is channeled via public/private funding, especially infrastructure. Take how SoftBank announced in December 2024 alongside President-elect Donald Trump; this commitment focuses on advancing artificial intelligence infrastructure within the United States over the next four years.
This “deep capital” (I’ll do a separate issue about it) is also pretty much pushing another couple of key players to come in with a massive injection, which might be in the order of hundreds of billions:
PE/Family Offices: PE/Family Offices might follow the dynamics created by the below layer, the public/private joint ventures.
Public/Private Joint Ventures: Much capital is channeled via public/private funding, especially infrastructure.
In short, it might seem “bubbly” in this current AI paradigm, and it’ll be.
But for now, keep tight as we’re just at the start of this journey.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
