The AI Buildout Continues To Exceed Expectations

Baron Capital 672 Followers Follow Summary Hyperscalers are on track to spend more than $700 billion this year, up 74% compared to last year. In the first quarter, the combined backlog across Alphabet, Amazon, and Microsoft now exceeds $1.4 trillion. Inference now accounts for roughly two-thirds of all AI compute, up from approximately one-third in 2023. On June 12, SpaceX completed the largest IPO in history, raising $75 billion at a $1.77 trillion valuation before rallying to a market capitalization above $2 trillion. Krittamet Saehan/iStock via Getty Images The following segment was excerpted from the Baron Opportunity Fund Q2 2026 Shareholder Letter. The largest companies in the world continued to expand their AI infrastructure investment plans during the second quarter. Over the past This article was written by Baron Capital 672 Followers Follow Baron is an asset management firm focused on delivering growth equity investment solutions. Founded in 1982, Baron has become known for its long-term, fundamental, active approach to growth investing. Baron was founded as an equity research firm, and research has remained at the core of its business. Note: This account is not managed or monitored by Baron Capital, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Baron Capital's official channels.