Kevin O'Leary Calls Texas Political Shift a 'Shockeroo' for AI Investors, Says 'That Capacity Will Go Somewhere Else'

Investor Kevin O’Leary warned that Texas’ political shift could disrupt planned investments in artificial intelligence (AI) infrastructure, but argued that growing demand for computing power will push companies to redirect capital elsewhere rather than abandon the sector.

Texas Political Shift Raises AI Investment Concerns

On Monday, in a post on X, O’Leary described Texas’ political shift as a “shockeroo,” arguing that a pause in planned investments would not eliminate the need for AI infrastructure.

“That capacity will go somewhere else. People aren’t going to stop using their phones or AI, and the economy keeps digitizing. The demand is insatiable. That’s why I remain optimistic,” he wrote.

In an accompanying video, O’Leary said Texas had been an attractive destination for billions of dollars in investments involving Space Exploration Technologies Corp.‘s (NASDAQ:SPCX), AI and data centers.

He expressed surprise at the possibility of a new administration slowing or pausing capital expenditures that had already been scheduled.

“The capacity demand for compute and that sector of the economy that drove the market is still there,” he said, adding that investments could move to other locations while Texas resolves its political uncertainty.

O’Leary also maintained that consumers would continue using AI applications and digital services, reinforcing the need for computing and storage capacity.

Texas turning blue was a shockeroo, but a pause in planned investment doesn’t make the demand for AI compute disappear. That capacity will go somewhere else. People aren’t going to stop using their phones or AI, and the economy keeps digitizing. The demand is insatiable. That’s… pic.twitter.com/HOEaJszhGx

— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) November 9, 2026

Tesla Expanded Texas Investments

Tesla Inc. (NASDAQ:TSLA) began preliminary work on its $10 billion “Project Crystal Sun” solar manufacturing facility near Houston, which was expected to create more than 9,000 jobs and begin operations in 2029.

Last month, O’Leary predicted Tesla and SpaceX would eventually merge, citing their growing technological overlap and shared interests in AI, computing infrastructure and engineering.

AI Infrastructure Spending Continued to Surge

Earlier this month, Advanced Micro Devices, Inc. (NASDAQ:AMD) CEO Lisa Su said the company had good visibility into data-center capacity for GPU deployments through 2027 and was working with customers to secure the necessary infrastructure.

Last month, LinkedIn co-founder Reid Hoffman said AI infrastructure investments and data-center construction were helping keep the U.S. economy out of a recession, calling the spending “the only reason we’re not in a recession.”

Previously, JPMorgan Chase‘s (NYSE:JPM) CEO Jamie Dimon said hyperscaler AI spending could reach $1 trillion in 2027, up from $700 billion this year, while warning of potential inflationary pressures and uncertainty over the AI industry’s eventual winners and losers.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock