To paraphrase Justin Timberlake in his iconic turn in the 2010 film "The Social Network," a trillion dollars isn't cool. You know what is? $3 trillion. The big picture: That's roughly how much money seven Big Tech companies, including Google, Microsoft and Nvidia, have committed to spending on AI-related infrastructure in off-balance-sheet commitments, according to a new analysis from Morgan Stanley. - And that's on top of the estimated $770 billion in debt and lease obligations that are on the balance sheets. Why it matters: The analysis finds that the total amount of spending on AI is much bigger than the already-mind-blowing headlines suggest, and — more of a red flag — it's more leveraged than is perhaps appreciated. How it…
Rep. Beth Van Duyne discusses voter concerns over A.I. data centers and also analyzes Morgan Stanley's Dallas expansion on 'Mornings with Maria.' 00:00 - The rise of AI data centers and voter opposition 01:02 - AI infrastructure as a national security asset 01:58 - Developer transparency and community collaboration 02:52 - Countering Chinese disinformation campaigns 03:42 - Morgan Stanley's 4,800-job move to Dallas 04:10 - The Texas Miracle vs. high-tax states
Data: U.S. Bureau of Labor Statistics via FRED ; Chart: Emily Peck/Axios Memory chip prices are skyrocketing, thanks to AI demand, and there's no end in sight. Why it matters: "Chipflation" is pushing up the prices for electronic goods like smartphones and laptops, as well as the costs for cloud storage and hardware — it also helps explain the eye-popping ascents in semiconductor stock prices. - While the overall effect on inflation may not be huge — other kinds of products get more weight in the government's measure of consumer prices — the scale of this boom is unprecedented. By the numbers: The Producer Price Index for electronic components and accessories, which measures what companies pay for semiconductor chips and other…
Alphabet said Monday it plans to raise up to $80 billion in equity to help fund its AI ambitions, which includes a $10 billion investment from Berkshire Hathaway via a private deal. Why it matters: One of the world's biggest companies, which has had historically high cash flow, is seeking more cash to stay in the AI race. Driving the news: Alphabet said the proceeds will support "capital expenditures to scale AI infrastructure and global compute" amid "unprecedented customer demand." The financing includes: - $30 billion in underwritten public offerings, split between mandatory convertible preferred stock and common stock. - $40 billion through an at-the-market stock offering program expected to begin in Q3. - $10 billion from Berkshire…
AI backlash is mounting. Executives are getting booed. Workers are threatening strikes, and protests are frustrating data center development — but that doesn't seem to worry investors who are raining money on companies in the business. Why it matters: AI hate could slow adoption of the technology, posing an underappreciated risk for investors buying into the current frenzy. The latest: Even SpaceX's prospectus — which is threaded with AI hype — warns that the backlash is a real threat: - "If AI technologies are perceived to be significantly disruptive to society, it could lead to governmental or regulatory restrictions or prohibitions on their use, societal concerns or unrest, or, both, any of which could materially and adversely…
If AI were a candidate for political office, it would be losing in a landslide. Why it matters: The AI hype cycle would have you believe the technology is inevitable. But AI backlash is growing, as people worry it will steal their jobs, jack up electricity rates and further enrich the wealthy, all while hurting the environment. State of play: A commencement address went viral this week after Florida real estate executive Gloria Caulfield said "artificial intelligence is the next Industrial Revolution," sparking a chorus of boos from the crowd. - The speaker could have avoided the jeers had she checked the latest polls: Only 18% of young people ages 14 to 29 say they feel hopeful about AI, according to a recent Gallup survey. - The…
Once called "dumb money," everyday investors —people trading via Robinhood, Schwab and the like—are now collectively big enough to have sway over the direction of markets. Why it matters: That power can come with real risks for this herd of retail investors and potentially for the economy if they pile into an investment that goes terribly wrong. State of play: Investments are taking on an increasingly bigger share of the wealth picture for everyday Americans, according to the JPMorgan Chase Institute . - Retail investing makes up about a quarter of daily trading volume on average, according to Jefferies . - Young people are also increasingly viewing investing as a source of income, according to a survey from the Oliver Wyman Forum.…
