"From the reciprocal, and some have said circular, nature of hundreds of billions in commitments in investment, tied to future chip purchases, to the extent to which GDP growth is reliant on this boom, some have said this is a bubble. A Harvard economist estimates 92% of US GDP growth in the first half of 2025 was due to investment in AI."
"Search Engine Marketing, the advertising business model at the core of Google, is perhaps the greatest business model of all time. Meta's advertising business, based on engagement and attribution, is a close second. And right behind both of these is Amazon's advertising business, powered by its position as the largest online retailer. While a smaller portion of Amazon's topline, its highly profitable advertising business makes up a disproportionate percentage of Amazon's profits."
OpenAI's AI browser release may accelerate an already historic surge in AI-related capital expenditures. Hundreds of billions in investment commitments, often tied to future chip purchases, create reciprocal and sometimes circular financial dynamics. A Harvard economist estimates 92% of US GDP growth in the first half of 2025 resulted from AI investment. The relationship between rapid AI investment and the advertising-technology business model remains central to broader economic impact. Internet infrastructure has been engineered for 25 years to extract advertising revenue. Search Engine Marketing drives Google, Meta relies on engagement and attribution, and Amazon's highly profitable advertising arm contributes disproportionately to profits while retailers launch retail media networks.
Read at www.cnbc.com
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