AI investments are pulling the US economy forward. Will it continue?
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AI investments are pulling the US economy forward. Will it continue?
"If businesses pull back on their AI spending because they find the tools are not that helpful, it could cause major problems for the AI industry. Despite United States President Donald Trump's tariff and immigration policies roiling businesses, the US economy is relatively stable. Experts say the country can thank the artificial intelligence (AI) industry for that. AI machinesin quite a literal senseappear to be saving the US economy right now, George Saravelos of Deutsche Bank wrote to his clients at the end of September."
"AI companies are investing hundreds of billions of dollars into AI infrastructure and development, and other US companies are spending billions on AI products. Just last month, a data centre in Abeline, Texas, the flagship site of the $500bn Stargate programme, a joint venture between Oracle, OpenAI and Japan's SoftBank to advance AI infrastructure in the US, came online. Around the same time, chipmaker Nvidia said it would invest up to $100bn in OpenAI and provide it with data centre chips."
"It also became the first US company to hit a $4 trillion market value. It was soon followed in that benchmark by Microsoft, which has seen its stock price surge, with AI one of key factors driving business demand. Nvidia and Microsoft are not alone. Google's parent company Alphabet and Meta Platforms, which owns Facebook, Instagram and WhatsApp, have upped their commitments to their AI ambitions and investments."
Massive corporate spending on AI infrastructure and products is bolstering US economic stability and helping to avert recession. Companies and partnerships are investing hundreds of billions into data centres, chips and development, exemplified by the $500bn Stargate data centre in Abeline, Texas, and Nvidia's pledged up to $100bn investment in OpenAI plus data-centre chips. Microsoft, Nvidia, Alphabet and Meta have increased AI commitments, lifting stock values and business demand. High concentration of AI momentum in a few firms, with seven companies pulling hundreds of others forward, raises concerns of an AI-driven market bubble similar to the late 1990s dot-com boom.
Read at www.aljazeera.com
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