Raoul Pal(@RaoulGMI):The hyperscalers are the biggest cash-generating businesses the world has ever seen. And they’re recycling all of that cash flow into the biggest capex build in history. It’s a self-reinforcing loop. They use the technology they’re building themselves, productivity rises, cash flows rise, capex accelerates. People worry about the borrowing, but these companies carry roughly 3.5% of their market cap in debt. They’re barely in debt at all. This is already the second largest capex event in history. The only bigger one was the railroads... and that cycle ran for 35 years. If intelligence keeps rising, capex keeps rising with it. There is no end to the need for data centers, compute and energy.

2026.10.27 05:02

The hyperscalers are the biggest cash-generating businesses the world has ever seen. And they’re recycling all of that cash flow into the biggest capex build in history. It’s a self-reinforcing loop. They use the technology they’re building themselves, productivity rises, cash flows rise, capex accelerates. People worry about the borrowing, but these companies carry roughly 3.5% of their market cap in debt. They’re barely in debt at all. This is already the second largest capex event in history. The only bigger one was the railroads... and that cycle ran for 35 years. If intelligence keeps rising, capex keeps rising with it. There is no end to the need for data centers, compute and energy.