AI Infrastructure Capex Frenzy and Governance Oversight

Hyperscaler AI capex continues at record levels (Google-SpaceX $920M/month, Microsoft $37.5B/qtr) with growing skepticism from investors (Burry, Elliott, Dalio) and evidence of value destruction (Meta 91% FCF drop, Korean ETF blowout). Boards face pressure to scrutinize ROI, contractual insulation, and financial reporting tactics (e.g., Microsoft extending data center useful life). New frameworks (tokenomics, 12-question AI asset visibility, CFO as Finance Architect) provide tools for oversight. July 2026 turning point with Chinese open-source models and leveraged fund collapses adds downside risk. Michael Burry warns volatility-targeting funds could amplify market crashes, with $500B in such funds and asymmetric fear at 98-year highs — a systemic risk signal for boards. White House finalizes voluntary AI cybersecurity testing framework for advanced models — boards should ensure awareness and preparedness. Palantir lifts annual revenue forecast on steady AI demand, offering a positive monetization data point. Latest: BCG survey reveals 75% of directors rate AI understanding as on par, but CEOs say many lack depth — five moves for CEO-led learning and transformation committees. Palantir strong Q2 adds positive AI monetization data point.