The article discusses how the rise of artificial intelligence (AI) is driving a surge in capital expenditure (capex) spending by companies, despite the Federal Reserve’s efforts to cool the economy through higher interest rates. According to the article, companies are investing heavily in AI technologies, such as machine learning and natural language processing, to gain a competitive edge and improve efficiency. This capex boom is being fueled by the potential of AI to transform various industries, from healthcare and finance to manufacturing and logistics. The article cites examples of companies like Microsoft, Google, and Amazon that are pouring billions into AI research and development. However, the article also notes that the rapid adoption of AI raises concerns about job displacement and the need for reskilling workers. Overall, the article suggests that the AI revolution is driving a significant shift in corporate spending patterns, with companies prioritizing investments in this transformative technology despite the broader economic challenges posed by rising interest rates.