> investors flock to AI hail maries and not tried-and-proven infrastructure demonstrates the limitation of the demand on one hand, and asset bubble in tech on the other.
Not at all.
VC investors flock to Hail Marys because industry disruption makes outsized returns (which is their investment thesis).
Investors who want stable, predictable, long term returns (eg retirement funds) love infrastructure projects.
Investors who want stable, predictable, long term returns (eg retirement funds) love diversified protfolios. FTFY.
Nobody is doing infra at scale in the private sector. Part of the reason I is lied -- it is risky not because it won't work, but simply because of the shear amount of upfront cost and duration of construction up front.
Of course, safe investor flocking to indexes of existing things does not missing big infra investment make.
Not at all.
VC investors flock to Hail Marys because industry disruption makes outsized returns (which is their investment thesis).
Investors who want stable, predictable, long term returns (eg retirement funds) love infrastructure projects.