NYTIMES (Joe Rennison) - Amazon and Alphabet’s Profits Reveal Circular Nature of A.I. Boom
Investment gains at Alphabet and Amazon reveal a new way in which technology companies’ fortunes are increasingly linked.
AXIOS (Neil Irwin) - Quantifying the AI boom crowding-out effect
When investment on the scale of the current AI boom occurs, it inevitably has to come at the expense of something. All the resources devoted to building data centers and developing AI models would otherwise go to something else. The big picture: This crowding out is smaller than you might expect, Goldman Sachs economists find in a new note. - But it does exist, they say, and takes the form of displacing other tech investment and construction , as well as raising corporate borrowing costs. By the numbers: AI investment will be about $600 billion this year, some 2% of GDP, accounting for 10% of business fixed investment and 15% of equipment investment, economists Jessica Rindels and David Mericle wrote. State of play: The first…
When investment on the scale of the current AI boom occurs, it inevitably has to come at the expense of something. All the resources devoted to building data centers and developing AI models would otherwise go to something else. The big picture: This crowding out is smaller than you might expect, Goldman Sachs economists find in a new note. - But it does exist, they say, and takes the form of displacing other tech investment and construction , as well as raising corporate borrowing costs. By the numbers: AI investment will be about $600 billion this year, some 2% of GDP, accounting for 10% of business fixed investment and 15% of equipment investment, economists Jessica Rindels and David Mericle wrote. State of play: The first…Open
NYTIMES (Andrew Ross Sorkin, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Niko Gallogly, Brian O’Keefe and Ian Mount) - The Chips Rout Goes Global
Shares in semiconductor companies plunged in South Korea and Europe, adding fresh doubts to the durability of the artificial intelligence trade.
NYTIMES (Ian Frisch) - Blockbuster I.P.O.s Are Creating New Millionaires. Philanthropies Want a Cut.
As start-ups like Anthropic and OpenAI prepare to go public, nonprofits are hoping for a secondary giving windfall from the new tech ultrawealthy.
THEAMERICANCONSERVATIVE (Harrison Berger) - Dow Hits Record High 50,000
State of the Union: The surge contrasted with high housing and credit costs. The post Dow Hits Record High 50,000 appeared first on The American Conservative .
On Friday, the Dow Jones Industrial Average reached 50,000 points for the first time in history, closing at 50,115.67. President Donald Trump hailed the milestone in a post on Truth Social, presenting it as evidence that his economic agenda is working. [BLOCK]The “Experts” said that if I hit 50,000 on the Dow by the end of my Term, I would have done a great job, but I hit 50,000 today, three years ahead of schedule — Remember that for the Midterms, because the Democrats will CRASH the Economy![/BLOCK] Meanwhile, the S&P 500 and the Nasdaq each rose around 2 percent The Dow’s record close followed an otherwise volatile week in which parts of the technology sector sharply sold off. The market rally comes amid signs that Americans…Open