AI race

Investment into Artificial intelligence infrastructure continues to grow at an incredible pace. Hyperscalers are expected to pour $1Tn in 2017 into data centers , chips, engineers, and whatever else is needed to win the race. But the AI game is an infinite game, only the one that survives wins. And the Mag 7 are desperately trying to be that one. Take a look at the charts below, starting with the bottom one: America is spending more money constructing data centers than building offices. Let that sink in. And then look at the top chart. Over the last 200 years, capital expenditures in technology have accounted for 2-4% of GDP on average. CapEx on AI software is already at 9% of GDP, and AI data centers is still around 2%. Comprare that to railroad investment in the 1800’s. We’re all in on AI. Debt, Equity and human capital are being maximized to reach AGI. And then, most likely, put that cutting edge intelligence on a robot. What’s missing on all this? Something so simple, it hurts. What’s the ROIC (Return On Investment Capital)? And who will be fit from it?

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