Bitcoin Sees Capital Inflow Shift as Easy AI Gains Dry Up

Veteran macro investor Jordi Visser says Bitcoin is preparing for new capital inflows as investors shift their funds away from AI stocks. According to Visser, who has spent over 30 years in global markets and previously served as chief investment officer at Weiss Multi-Strategy Advisers, the era of effortless multi-fold returns from AI investments has come to an end.

The big tech companies that have been heavily investing in AI, including Alphabet (GOOGL), Meta (META), and Microsoft (MSFT), are burning through cash faster than they bring it in. These companies' free cash flow, which represents the cash remaining after funding data centers and operational expansion, has contracted year-over-year.

Alphabet spent more money last quarter than it collected, marking its first negative cash period since listing publicly in 2004. Meta experienced the biggest drop in cash buffers, keeping $784 million compared to $8.5 billion during the same quarter last year. Microsoft reported the strongest results among the group, with Azure cloud revenue rising 43%, but still saw a 23% decrease in spare cash.

Visser emphasizes that AI itself is not finished, but rather the easy gains have come to an end. He states, 'The AI trade's over. The ability of getting seven, eight times your money in that is over.'