T. Rowe Price manager: AI capex could hit $1.6 trillion next year

A fund manager at T. Rowe Price estimates that global AI capital expenditure could reach $1.6 trillion next year. He argues that major hyperscaler companies can comfortably fund these investments and expect high returns on capital with short payback periods. The manager sees more parallels with the tech boom of 1998 than with the subsequent dot-com bust.