Veteran macro strategist Jordi Visser signals the AI gold rush is losing steam. Easy outs are behind us. Now, Bitcoin is where he expects the next surge in returns.
Big Tech’s AI Spending Drains Cash Reserves
Recent earnings reports reveal a significant shift. Google, for instance, spent more than it earned last quarter for the first time since going public in 2004. The critical metric here is free cash flow money left after funding vast AI data centers. Microsoft, Meta, and Alphabet all saw this buffer shrink dramatically. Meta’s plunge is dramatic: from $8.5 billion in free cash flow last year to under $1 billion now, despite sales growing 28%. It borrowed nearly $25 billion and spent over $31 billion on new infrastructure in three months alone. Much of this increase comes from legal and severance costs, roughly $3.58 billion. Microsoft fares better, with sales up 18% and a 43% jump in Azure cloud business revenue, but free cash still fell by 23%. No one is immune to the costly AI race.
Visser Predicts AI Windfalls Are History, Bitcoin Takes Spotlight
Jordi Visser brings 30 years of market experience, once running a hedge fund’s investment strategy and now heading AI research at 22V Research. He bluntly declares the era of seven- or eight-fold AI gains over. Instead, investors should expect steady returns near 30% annually, far from the explosive profits before. The reason: open-source AI models are leveling the playing field faster than companies can maintain dominance. This intensifies competition and compresses margins across the sector. Wall Street is already divided on the outlook for AI chipmakers. Meanwhile, market giants like Goldman Sachs warn that US equities lack fresh momentum as hedge funds stretch borrowing to near five-year highs. Visser’s forecast nudges investors to pivot toward Bitcoin, anticipating it as the next catalyst for outsized returns.
This content is for informational purposes only and not financial advice.
