The Hyperscaler Reckoning: $700 Billion for a Utility - While the Moats Disappear?
Recent earnings confirmed history's largest AI infrastructure cycle. The real story is a layer-by-layer mutation of tech economics and the sorting of four companies the consensus still treats as one.
TL;DR: The infrastructure cycle is still in the acceleration phase. But for most hyperscalers, Capex is buying a utility that risks commoditization, while the agentic transition is simultaneously destroying the moats of the high-margin businesses those same companies are trying to protect. Meta, Amazon, Google, and Microsoft represent c.20% of the S&P 500.
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