About the JM AI Capex Report

The AI Capex Concerns

AI infrastructure spending might have overshot, J.P. Morgan’s latest analysis says. $2 trillion in buildout needs $650 billion yearly to make sense. Analysts call it a bubble. Maybe. But our exposure is microscopic. route0 and axiom0 live on-device. No datacenters to amortize, no GPU fleets to idle.

We build local AI that runs in browsers and enterprise workspaces under audit and compliance controls. The market can freeze GPU capex and memory supply; our unit economics stay fixed.

The Lowdown

Dependence on an upstream LLM API, which in turn depends on these humongous clouds of GPU compute, makes it hard to drive a margin, now further threatened by the AI Capex report. Centralized AI firms built around compute oversupply face margin compression. We don’t have this issue. We built around edge efficiency, compliance, and deterministic local inference. route0 allows companies to build out their own custom tooling powered by local AI on each device with little effort.

If the AI supercycle slows, our stack doesn’t shrink, it just keeps working. We challenge the notion that AI PC revolution is dead and trust aleph0 will breathe new life into this market.