Chip-making equipment giant ASML just reported strong order numbers, easing fears that the massive AI spending boom is running out of steam. Online discussions among tech workers quickly pointed out that order books are filling up as far out as 2029 and 2030, suggesting that the industry is still placing massive bets on future compute infrastructure.
For early-stage founders, this capital pipeline means infrastructure availability isn't drying up, but it comes with a distinct warning. Multi-year hardware backlogs often reflect over-ordering during a hype cycle rather than real-time software adoption. Building an early-stage startup on the assumption that upstream hardware spending automatically equals downstream customer demand is a dangerous trap.
For £500 backers, the takeaway is simple: separate infrastructure momentum from startup unit economics. ASML's strong orders prove the pipes are still being laid, but the smartest seed investments will go to lean teams solving clear problems, not those simply burning investor cash to buy compute.