TechnologyJuly 4, 2026
capex
/ˈkæp.ɛks/
Definition
Funds used by a company to acquire, upgrade, and maintain physical assets such as data centers, servers, and infrastructure.
Etymology
The word is a portmanteau of 'capital expenditure.' It stems from the Latin 'capitalis,' meaning relating to the head or property, combined with the Latin 'expendere,' meaning to pay out.
In the news
In the article, the term is used to explain why some major tech companies have seen their stock performance lag, as they are pouring massive amounts of money into AI infrastructure. This high level of capital spending is presented as a necessary trade-off for long-term growth.
Veteran Tech Analyst: The Market Has Wrongly Left Software for Dead in the AI Rotation
Read the full article ↗24/7 Wall St.