HSBC, General Atlantic CEOs flag AI capex-revenue mismatch, 'irrational exuberance'

HSBC's warning about the AI capex-revenue mismatch, specifically the $380 billion in expected capex from Alphabet, Meta, Microsoft, and Amazon, highlights the immense investment in artificial intelligence infrastructure. This significant expenditure is further amplified by OpenAI's announcement of $1 trillion in infrastructure deals, indicating a substantial surge in AI-related spending. For website owners, this news means that the volume of AI-generated traffic and content on their sites may increase exponentially, potentially leading to unprecedented levels of bot activity. As AI-powered tools become more prevalent, website owners must be prepared to handle the consequences of "irrational exuberance" in the AI sector, including potential strains on their infrastructure and changes in user behavior. To navigate this landscape, website owners should take the following steps: monitor their website's traffic patterns closely to identify AI-generated activity, update their llms.txt files to reflect the evolving AI landscape, and consider implementing measures to distinguish between human and AI-generated traffic to ensure accurate analytics and user experience.