{"id":3035,"date":"2026-08-05T16:05:16","date_gmt":"2026-08-05T16:05:16","guid":{"rendered":"https:\/\/americanhomejournals.com\/?p=3035"},"modified":"2026-08-05T16:05:16","modified_gmt":"2026-08-05T16:05:16","slug":"hedge-fund-manager-gavin-baker-says-investors-have-been-too-quick-to-judge-big-techs-ai-spending","status":"publish","type":"post","link":"https:\/\/americanhomejournals.com\/?p=3035","title":{"rendered":"Hedge fund manager Gavin Baker says investors have been too quick to judge Big Tech’s AI spending"},"content":{"rendered":"
\n

Hedge fund manager Gavin Baker, who famously invested early in SpaceX, says investors have been too quick to judge how much Big Tech is spending on AI infrastructure.<\/p>\n

Read more Uber keeps AI spending stable using cheaper models and employees tracking cost, CFO says<\/a><\/p>\n

Baker, speaking on the “Invest Like The Best” podcast, said improving cash flow, continued demand for AI, and underpriced compute contracts are all reasons investors should worry less about Big Tech’s eye-popping spending.<\/p>\n

“You’re going to see a lot of acceleration that’s going to answer these ROI questions,” Baker said, referring to what he says is a recent increase in the amount of cash these AI businesses are collecting. “You’ve started to see that this quarter.”<\/p>\n

In July, investors rushed to sell memory and chip stocks. They were largely worried that companies like Meta were spending too much on AI infrastructure without a clear path to generating returns on those investments.<\/p>\n

Meta’s free cash flow plunged 91% year over year, to $784 million in the second quarter of 2026. The company, however, posted a 25% year-over-year rise in net cash from its operating activities.<\/p>\n

Read more This startup that just raised $6.5 million bets the next big side hustle is controlling robots with VR headsets<\/a><\/p>\n

“That’s a material acceleration at this scale,” Baker said.<\/p>\n

Baker also said that persistently high GPU prices show that demand for AI computing remains strong.<\/p>\n

“I don’t think anyone in ’24 or ’25 thought that the prices of old GPUs would still be going vertical in 2026,” he said.<\/p>\n

Many cloud providers, Baker said, have yet to fully monetize the AI infrastructure they’ve already built because much of their compute capacity is tied to older, lower-priced contracts they signed when GPUs were cheaper.<\/p>\n

“Essentially, you have the contracted base of installed compute trading at a massive discount to the current spot market,” he said.<\/p>\n

Read more Elon Musk\u2019s 5 most noteworthy comments during SpaceX\u2019s first earnings call<\/a><\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Gavin Baker, managing partner of Atreides Management, says Big Tech’s huge AI infrastructure spending is beginning to pay off.<\/p>\n","protected":false},"author":1,"featured_media":3034,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-3035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai"],"yoast_head":"\nHedge fund manager Gavin Baker says investors have been too quick to judge Big Tech's AI spending - American home journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/americanhomejournals.com\/?p=3035\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hedge fund manager Gavin Baker says investors have been too quick to judge Big Tech's AI spending - 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