The so-called Magnificent 7, who are driving much of the buildout, have continued to outperform. (Photo: Freepik) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Over the past year, the AI boom has reached a key inflection point, believe researchers at Renaissance Investments. Fueled by the promise of exponential "scaling laws", capital expenditures have skyrocketed, said a report by the firm. The largest US technology firms are on track to spend nearly $400 billion this year alone.

So far, investors have looked upon these capital investments favourably. The so-called Magnificent 7, who are driving much of the buildout, have continued to outperform. Oracle's stock surged 36% after announcing a deal to build OpenAI's data centers.

Yet, it remains far from clear whether th

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