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 BallBg2 Pod
Created: 8/10/2026, 10:49:01 PM

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