BIT Capital AI ROI Research Memo: "Is it all worth it? One year later."
Are Big Tech companies overextending themselves with their AI investments? In October 2024, Sequoia warned of an "AI bubble" – the Nasdaq 100 fell 12 percent at the time.
One year later:
- The "Mag 7" gained +39 percent.
- Microsoft, Google, and Meta increased or stabilised their Return on Invested Capital (ROIC) – despite massive CapEx.
- AI is no longer purely an efficiency theme but is becoming a growth engine.
The contribution of artificial intelligence to overall economic growth is changing noticeably. AI is no longer used merely to reduce costs or automate processes, but to develop new products and services. What was initially visible in efficiency gains and margin expansion is increasingly showing in a phase of accelerated revenue growth. According to Harvard economist Jason Furman, AI investments by major US tech companies are now driving US GDP by a full percentage point per year.
Note: The full research memo is available in German only.
