AI capex could hit $1.6 trillion next year, says fund manager who sees more echoes of 1998 than the dot-com bust

A T. Rowe Price fund manager predicts that spending on artificial intelligence could skyrocket to $1.6 trillion next year, drawing parallels to the tech boom of 1998 rather than the dot-com bust. The manager believes that major tech companies have the financial capacity to sustain this level of investment, anticipating significant returns and a quick payback period. This surge in AI investment reflects the growing importance of artificial intelligence in driving future economic growth and innovation, signaling a potential new era for tech companies and the broader market.