The biggest companies in history are betting every dollar they have on AI

Source: https://pomp.substack.com/p/the-biggest-companies-in-history

Legendary VC investor Tim Draper bought 29,656 BTC at $632 in 2014. That trade is up roughly 100x. Now, he’s backing a new venture called mogul.mogul is a revolutionary real estate investment platform that tokenizes property ownership on the blockchain. The mogul founders built Goldman Sachs’s institutional single-family rental program and deployed over $1B to this strategy. Then, they left to bring that same institutional strategy to investors like you and me.To date, they’ve launched 100+ properties and averaged an 18.8% annual IRR, which is ~3x higher than competitors.What you get: ownership in institutional-quality rental properties. Monthly rental income. Real-time appreciation. Tax benefits. No tenant calls.Long story short: Draper backed it. The founders built the model at Goldman. Now you can access it.1Check Out Their Latest PropertiesToday’s edition is a guest post by Phil Rosen, chief market strategist at ProCap Financial and the author of the Opening Bell Daily newsletter.The balance sheets of Big Tech companies are all sending the same bullish message.The hyperscalers that dominated the last decade — Alphabet, Microsoft, Amazon, Meta — are hell-bent on shaping the next one by deploying as much capital as possible into artificial intelligence.Alphabet, Microsoft, Amazon and Meta will invest roughly $673 billion in 2026 against “only” $660 billion of trailing operating cash flow.That means they will spend 102% of their operating cash flow on AI capex this year, up from 64% in 2025 and 48% in 2024, according to company filings.In other words, Big Tech will spend 102 cents of every dollar it makes.It’s hard to know how much of their collective bet on AI is competitive one-upmanship versus conviction on new technology.Either way, over the last four years as capex has climbed and free cash flow has dwindled, the Magnificent 7 have delivered weaker and weaker annual returns for shareholders.An equal-weighted basket of the Mag 7 this year has gained just over 4%, even as the S&P 500 has more than doubled that in the same stretch. That puts the group on pace to trail the index for the first time since 2022 after a three-year winning streak.While the Mag 7 has shown renewed strength in recent days, public markets have largely punished Big Tech for its spending ambitions over the last year. That said, investors have also positioned themselves to capture the other side of the spending boom.Every dollar hyperscalers spend lands on someone else’s balance sheet.Chipmakers, power producers, cooling specialists and niche utility stocks have been among the biggest winners (I’ve shared many of these names inside our Best Ideas Club portfolio).The 102% figure is ultimately a story of asymmetry. The biggest companies in history are funding the buildout while the firms selling them chips, electricity and materials are cashing in.As much as the bears point to the eye-watering capex as reason for panic, it’s just as palatable to take it as a bullish signal for the other side of the trade.Pomp Letter subscribers can join our Best Ideas Club with a special 20% discount for the next 24 hours to unlock our high-conviction portfolio that’s crushing the S&P 500.Join for 20% offJoin me this Thursday, August 6th at 2:00pm EST for a live, deep-dive webinar with the team at Arch Public. We’re diving deep into how systematic algorithms adapt to modern crypto volatility and how those same quantitative strategies are now being applied to traditional equities.Plus, there will be a Q/A opportunity at the end. Space is limited, so make sure to reserve your spot ahead of time.👉 Register Here For FREENancy Beaton is the President of Retail at Uphold.In this conversation, we play devil’s advocate on the biggest crypto critiques — from crypto losing its “outside the system” ethos to custodial risk and the Clarity Act. We also discuss tokenized securities, what her users are actually demanding, and where bitcoin and blockchain adoption are headed over the next decade.Figure – True DeFi Democratized Prime to earn ~9% APY! They also have the lowest industry interest rates at 8.91% with 12 month terms! Take out a Bitcoin Backed Loan today and buy more Bitcoin. Check out Figure! Figure Lending LLC dba Figure. Equal Opportunity Lender. NMLS 1717824. Terms and conditions apply.Arch Public - Arch Public’s cutting-edge algorithmic tools ignite profits, harnessing razor-sharp data analytics to nail perfect entries, exits, and risk management. Turn volatility into opportunity and do it hands free with Arch Public. (Oh, and yes, try us out for FREE too!)TikTok for Business — If your company is spending on ads and you’re ignoring TikTok, you may be missing one of the largest and most engaged audiences available today. Learn more at TikTok for Business!BloFin - BloFin is a fast-growing cryptocurrency exchange focused on providing professional-grade trading tools, deep liquidity, and a secure trading environment for crypto traders worldwide.BitcoinIRA - Save up to 37% in capital gains taxes on your retirement investments. Signup today and win up to $4,000 in rewards.Plaud - Plaud builds AI-powered wearable devices designed to help people capture, organize, and recall important information from real-world conversations and moments.Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit https://www.simplemining.io/pompUphold - Uphold is the all-in-one platform to trade, earn, stake, and swap across 300+ assets with real-time proof-of-reserves and any-to-any conversions. Manage your entire crypto portfolio in one place at www.uphold.commogul — Invest in tokenized residential real estate with targeted yields, monthly rent payouts, and no landlord headaches. Learn more at mogul.club/pomp.🚨READER NOTE: If you want to sponsor The Pomp Letter, you can fill out this form and someone from our team will get in touch with you.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.Subscribe to The Pomp LetterBy Anthony Pompliano · Thousands of paid subscribersPomp's daily newsletter breaking down Bitcoin, business, and macro trends before they hit mainstream media. Join 270,000+ subscribers by signing up below.

🔐 Cryptographic Verification

Archived URL: https://pomp.substack.com/p/the-biggest-companies-in-history

�� CONTENT HASHES:
  SHA-256:  22eb040a1af72d6cb7777a9184b3bd1b49b27217b24aaf6dd55a94f5629cc09b
  BLAKE2b:  09af970787414584548b0b32e655825db75adad9fd6158b7b85120c31888f61f
  MD5:      d820d1dd65b51b39f3e7b1b98e590d77

�� TITLE HASHES:
  SHA-256:  fbdfc5a688783fa2f49484ce2becfa0eef05b938cb3b9a16bbe60c42525f3730
  BLAKE2b:  8debec7026426851f30f1105761b65e481d77ca3e2224401eeacaa57a5b2d874
  MD5:      3eaeff2ae588ac983619e70bd1d6ea94

�� INTEGRITY HASHES:
  SHA-256:  a249fab3975786834157895f02d6f4048d4236dba07c6b152c2dfb283d42c7e7
  BLAKE2b:  b06ab699c7382a65c2ef4eab3561941519eba98e655543e78ec630945761c029
  MD5:      5e9bb042b8dcfee9d35157e4f3935e7d

Archived with ArcHive - Client-side cryptographic archival system