America's $1T AI Gamble

Treść źródłowa

Thanks for reading! If you haven’t subscribed, please click the button below:Subscribe nowBy subscribing, you’ll join over 75,000 people who read Apricitas!The United States is undertaking a historically unprecedented investment boom to build the computers, data centers, and other physical infrastructure needed to train and deploy Artificial Intelligence. Hundreds of billions of dollars have already been spent by hyperscalers racing to build smarter AI systems, and investment from major tech companies is set to shatter all previous records again this year. Amidst this boom, spending on data center construction has hit a new record high, now exceeding a $42B annualized pace, a more than 300% increase since the launch of ChatGPT in late 2022. While growth has slowed over the last six months, investment is still up more than 18% over the last year alone.Yet that figure only reflects the costs to build data center facilities themselves, not the much larger costs of the expensive GPUs, TPUs, and other electronics housed within. Real US fixed investment in those computers and related peripheral equipment has surged to a record high of more than $270B annualized, up nearly 50% over the last year and up 77% since ChatGPT’s launch.Likewise, spending on computers is dwarfed by investment in software development, which now exceeds $750B annualized, with an increasingly large share focused on training, deploying, and integrating AI systems. Combined, spending on data center, computer, & software investment now exceeds $1T annualized and is roughly equivalent to 3.5% of US GDP, another …