The AI revolution

Excerpt From

“Voters are angry about everyday costs, but lower prices are gone for good”

The Washington Post

https://apple.news/AMY8plrhWQ0qydrZh0bCCGA

The economy’s strongest point — the AI revolution — is among the forces fueling inflation. Massive spending on data centers means enormous demand for computer chips, cooling systems, server racks and power gear, which is driving up the price of components needed to make consumer tech products as well.

Software prices rose more than 28 percent over the past year while the cost of computer peripherals increased by 10 percent.”

“The AI build-out shows few signs of easing. Goldman Sachs expects the leading hyperscalers, including Alphabet, Microsoft and Meta, to spend a combined $1.2 trillion in 2027, up from around $800 billion this year. And Congress is unlikely to deliberately cool off the sector that is propping up economic growth and the stock market.

“The AI pressures that are coming from a surge in investment are not related to the policy environment per se or the political environment. They’re related to the fact that any technological revolution goes through a first phase, which is highly capital intensive,” said Greg Daco, chief economist for EY-Parthenon, a consulting firm.”