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AI infrastructure spend continues

AI infrastructure spending continues to rise, and today, we’re diving into one of the biggest business trends for 2025—AI development. While this trend shouldn't be too surprising given the heavy focus on AI in recent months, there's been a lot of skepticism regarding the capital expenditures (CapEx) companies are dedicating to it and the return on investment (ROI), or lack thereof. In this video, we’ll explore the latest CapEx spending plans for 2025, discuss how they’ll shape the biggest business trend of the year, and talk about how we should be preparing for it.

Let’s begin. Recently, Microsoft made headlines by announcing it would be spending $80 billion in CapEx in 2025 to build out its AI capabilities. This announcement came in a blog post by Microsoft President Brad Smith, published today to coincide with the start of the new Congress. In the post, he outlines strategies for the US to lead in AI innovation. This CapEx commitment isn’t entirely surprising, as Microsoft had already indicated plans for over $20 billion in quarterly AI spending for the remainder of its fiscal year.

To put this number in perspective, Google has spent $49 billion, Amazon $65 billion, and Meta $31 billion in the last four quarters, based on available data. We’ll see final numbers for these companies once they report their earnings in the coming weeks.

This ties back to a key point I raised back in March of last year when I added Nvidia to my portfolio. I didn’t view the AI infrastructure buildout as something that had already been completed; instead, I saw it as just beginning. With financially strong big tech companies vying for the best AI chips and hardware, the race to dominate the AI infrastructure market is only intensifying.

While much of the focus has been on generative AI—a trend I believe will continue—there are still lingering questions about the return on investment. Despite massive spending, AI has yet to become a major revenue driver for Microsoft. The company projects $10 billion in AI-related sales this year, but with $80 billion in CapEx spending, the ROI is still unclear. We don’t have precise figures for sales of products like Copilot, and Microsoft hasn’t disclosed how much of its AI spend is directed at its Azure cloud platform, only sharing how AI contributes to Azure’s overall growth.

Investors have expressed concern about when AI-related spending will start paying off, and it’s not just Microsoft facing this dilemma. Other tech giants share similar challenges. Microsoft CEO Satya Nadella and CFO Amy Hood have noted that they can scale back AI spending if demand slows, but for now, they simply can’t keep up with the overwhelming demand, pushing spending levels even higher.

The critical point here is that each company is unique, and while they’re all vying for dominance in the AI space, the path to profitability or increased efficiency will vary. For cloud providers like Amazon, Microsoft, and Google, their ability to support companies developing AI-related services puts them in a strong position. On the other hand, companies like Meta, which are already benefiting from AI-driven advertising improvements, might see a clearer and more immediate return on their investments.

As we continue to follow this trend, it’s crucial to understand that while the overall AI infrastructure buildout is massive, the benefits are still unfolding, and each company's trajectory will differ.

The Biggest Business Trend of 2025: Robotics

While AI and compute infrastructure were the stars of 2024, I believe 2025 will mark the rise of robotics as the next major business trend. Robotics is set to make significant strides, moving from concept to widespread application across industries.

Take Unry, for instance—a company based in China that we recently placed an order with. Their Go2 robot, priced at just $1,600, is an incredible piece of technology. It comes equipped with an API, LiDAR, and intelligent guidance systems, allowing it to perform diverse tasks. This robot has been featured in videos showcasing its potential as an autonomous field soldier, but its applications extend far beyond that. For instance, it can be used in scientific research or on farms to collect and report data. At such a low cost—under $3,000 for full functionality—these robots are unlocking possibilities that were previously unimaginable.

While high-profile examples like Tesla’s Optimus offer a glimpse into the potential future of robotics, what’s truly exciting is the technology already available at relatively affordable prices. Robots like Unry’s Go2 are programmable and ready to tackle a variety of tasks, bringing the power of AI and advanced hardware into the physical world. This means businesses can benefit from improved speed, enhanced safety, and reduced costs. The ROI conversation, in this case, becomes much clearer.

Beyond traditional tech companies like Nvidia and Broadcom, robotics has the potential to impact virtually every sector. Retail giants like Walmart, fast-food chains like McDonald’s, and service providers like Waste Management can leverage affordable, reliable robots to transform operations—not just by cutting costs but by driving innovation and growth. For example, robots could streamline supply chain logistics, improve customer service, or enable entirely new business models.

Amazon, unsurprisingly, is at the forefront of this trend. Their recently opened fulfillment center in Shreveport, Louisiana, features 10 times more robots than any of their other facilities. Robots like Sparrow, Cardinal, Robin, and Proteus are helping Amazon process orders 25% faster and at 25% lower cost, passing those savings along to customers. While human workers remain essential for designing, programming, and maintaining these systems, the integration of robotics is reshaping what’s possible in warehouse operations.

Robotics isn’t new—it’s been around for decades—but the integration of AI is pushing it into uncharted territory. AI-driven advancements are enabling robots to perform increasingly complex functions with greater autonomy. For example, Nvidia’s Jetson Nano, unveiled by CEO Jensen Huang, demonstrates how far robotics technology has come. This $249 AI computer delivers nearly 70 trillion operations per second in a compact, efficient form factor, making it easier than ever to experiment and innovate.

As these technologies become more accessible and affordable, the scope of experimentation and innovation in robotics will explode. From robots with wheels or legs to general-purpose humanoid machines, the possibilities are vast. In 2025, I expect robotics to emerge as a defining trend, transforming industries and reshaping the way we work and live.

How Should We Prepare for the Robotics Boom?

If robotics is set to become the defining trend of 2025, how should we position ourselves to benefit? Here are a few key considerations:

Invest Strategically

While there are plenty of robotics-focused companies, many have seen significant valuation increases, much like semiconductor and AI companies. Instead of chasing new or speculative players, consider strong, established companies that can leverage robotics to enhance efficiency and profitability. These businesses already have proven models and brand equity, and integrating robotics can drive bottom-line improvements, offering a potentially lower-risk opportunity compared to betting on emerging players.

Focus on Earning Potential

Investing isn’t the only—or even the best—way to benefit from this trend. A major opportunity lies in adapting to and embracing robotics within your own career or business. Often overlooked, this approach can provide a dual advantage:

• Preservation: Staying ahead of technological changes protects your career and ensures relevance in a rapidly evolving landscape.

• Growth: Early adoption and expertise in robotics and AI integration can set you apart, positioning you as a leader in your industry. This can lead to increased income and career opportunities as others scramble to catch up.

Skill Up

Learn how robotics and AI can apply to your field. Whether it’s programming, deploying robots, or integrating them into workflows, acquiring these skills can make you invaluable in your organization or industry. The ROI on self-education and professional development in this area could far outweigh potential stock market gains.

Think Broadly About Applications

The impact of robotics goes beyond tech companies. Industries like retail, logistics, agriculture, and even small businesses will find ways to adopt these technologies. Look for creative ways to use robotics in your current job or business, whether to improve efficiency, enhance safety, or drive innovation.

Ultimately, while investing in robotics-related companies is a valid strategy, preparing for this trend by aligning your career with it may yield the most significant returns. The people who embrace these advancements early will likely see their efforts pay off through both job security and accelerated career growth.

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