Concerns about mega-cap capex were overblown because operating income and margin expansion have outpaced capex increases in recent periods; unless a recession occurs with declining earnings while capex remains elevated, high capex is sustainable with rising topline growth and operating leverage.
causalpending
Speaker
Unidentified Speaker — Ep19. State of Venture, AI Scaling, Elections | BG2 w/ Bill… [tBU5UPI03Rg]Evidence Quote
“margin expansion and Topline growth have outpaced the increase in capex so people have tolerated it”
Source
Ep19. State of Venture, AI Scaling, Elections | BG2 w/ Bill Gurley, Brad Gerstner, & Jamin Ball— Bg2 PodCreated: 8/10/2026, 10:49:01 PM
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