AI Glossary

Capex

Also called capital expenditure

What does “Capex” mean?

Capex: Short for capital expenditure: money a company spends on long-lasting assets such as buildings, servers and chips, as opposed to day-to-day running costs. In AI, the term mostly refers to spending on data centers and accelerators.

Capex visual guide: Short for capital expenditure: money a company spends on long-lasting assets such as buildings, servers and chips, as opposed to day-to-day running costs. In AI, the term mostly refers to spending on data centers and accelerators.
Visual guide Open full size (new tab)

What is an example of “Capex”?

Investors debate whether large AI capex budgets will be matched by enough revenue from AI products.