Morgan Stanley says the colossal AI spending spree could pay for itself by 2028

Core Insights - AI is a significant market driver in 2025, with concerns about the sustainability of massive infrastructure investments by companies [1][6] - Morgan Stanley provides a positive outlook, suggesting that the current AI spending cycle is in its early stages and will yield returns [4][5] Group 1: AI Investments and Partnerships - OpenAI has formed substantial partnerships with major tech companies like Oracle, Nvidia, and Advanced Micro Devices, focusing on investments in chips and data centers [2] - A chart shared by Morgan Stanley highlights the flow of capital among tech companies connected to OpenAI, indicating a robust investment ecosystem [3] Group 2: Financial Projections and Market Sentiment - Morgan Stanley forecasts that AI software revenue will reach US$1.1 trillion by 2028, suggesting that the current investment cycle is part of a longer-term profit trajectory rather than a speculative bubble [5] - Analysts from other firms express concerns that high capital expenditures in AI could negatively affect stock prices of major tech companies like Amazon, Microsoft, and Alphabet over time [6]