AI Investor Warns of Risky Data Center Spending Spree

As of November 17th, 2025, Klarna co-founder Sebastian Siemiatkowski, who holds shares in leading AI companies, has expressed concerns over the tech industry's massive investments in data centers to power AI models. Siemiatkowski, an AI evangelist, believes the industry is pouring too much money into computing infrastructure, with just four tech giants - Alphabet, Amazon, Meta, and Microsoft - announcing a combined $112 billion in capital expenditure for the third quarter.

Siemiatkowski argues that the industry may be overestimating the computing power needed to run advanced AI, as the models themselves are the "most effective compression technology ever invented" and could become more efficient over time. He points to the popularity of ChatGPT as evidence of widespread AI adoption, but questions whether spending $1 trillion on servers is truly worth it.

The Klarna co-founder, whose company has used AI to cut more than half of its workforce, says he has raised his concerns with executives at the tech companies he invests in, though they are more publicly dismissive of his views. Siemiatkowski believes the booming valuations of AI companies, such as Nvidia's $4.5 trillion market capitalization, are making him "nervous" due to the wealth automatically allocated to this trend.