Yesterday, Jamie Dimon gave the trillion-dollar AI capex boom his blessing.
Standing next to Anthropic CEO Dario Amodei in New York on Tuesday, the JPMorgan chief told Wall Street that the buildout is “worth the trillion-dollar investment”… a sentence that would have been a punchline two years ago.
Now it feels like even the mainstream media disagrees with the consensus.
Here’s the problem..
BofA Global Research charted every market concentration peak of the last sixty years on a single line:
Four bubbles. Four peaks. All in roughly the same 40-44% concentration band.
And we just printed the fourth one.
The world’s largest bank cosigned the bet at the exact level the last three manias topped out.
Axios reports:
Jamie Dimon blesses the trillion-dollar AI capex boom
JPMorgan Chase CEO Jamie Dimon stood next to Anthropic CEO Dario Amodei in New York on Tuesday and told Wall Street the AI buildout is worth every dollar.
Why it matters: With investors increasingly anxious about whether AI revenue can keep pace with spending, the head of the world’s largest bank endorsed a capital expenditure wave projected to top $1 trillion next year.
- The latest Big Tech earnings reports last week made clear that the massive buildout is propping up not only the stock market, but U.S. economic growth writ large.
- “The technology is so powerful, it’s worth the trillion-dollar investment,” Dimon said at an Anthropic event unveiling new partnerships and AI agents tailored to financial services.
Zoom in: Dimon and Amodei also addressed Mythos, Anthropic’s powerful new model whose cyber capabilities prompted Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell to convene an emergency meeting with major bank CEOs last month.
- Dimon, who was invited but unable to attend that meeting, said the banks have since gotten together to “triage the issues” — and argued protections should extend to all banks, not just the largest.
- “The government can’t do all that,” he said.
- Amodei said he had a great conversation with Bessent and pushed back on the suggestion that Mythos’s limited release was driven by compute constraints, calling that a “misconception.”
So a banker blesses a trillion-dollar bet, the regulators panic about a single AI model, and the index rips on the back of seven names doing all the spending.
This is what late-cycle capex manias look like in real time… every cycle has them, and every cycle ends the same way.
Stack accordingly.
