Will the AI investment boom mimic that of the railroads? Until recently, most investors took comfort in the fact that, unlike the 19th-century railroads, much of the AI capital investment boom was being financed out of the massive profits earned by big tech companies such as Microsoft, Alphabet, Meta, and Amazon. The expectation was that startup AI companies such as OpenAI and Anthropic—which have comparatively modest revenues—would have no problem raising capital through IPOs or from deep-pocketed sovereign wealth funds of the Middle East. Easy access to capital was thought to preclude the sort of boom-bust cycle that characterized the railroad era.