Everything on Capital Allocation & Infrastructure

Hyperscalers are consuming free cash flow to fund AI infrastructure, prioritizing long-term compute sovereignty over short-term profitability. This aggressive capital allocation creates a high-barrier moat but introduces execution risk if token demand plateaus.

Impact: Companies must align investment strategies with infrastructure providers to secure compute access and avoid supply chain bottlenecks.

— from AI Infrastructure Boom and Enterprise Transformation · The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch· May 07, 2026