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Berkire Hathaway’s CEO, Warren Buffett, acknowledged that the “capital intensity” of technology companies is increasing. A couple of years ago, it had quoted the lack of need for capital as a great advantage that technology companies had on others.
The reason for the change? Massive investments in artificial intelligence development and infrastructure over the last two years.
“There is more capital intensity with the magnificent 7 than it was a few years ago,” said Buffett.