Is the AI Buildout Propping Up U.S. GDP?

"What's lifting growth now isn't consumer demand: it's infrastructure. From data centers and chip foundries to electric utilities and fiber cabling, billions are being poured into the AI ecosystem. Companies like Nvidia (NASDAQ: NVDA) are selling record volumes of GPUs, while utilities expand capacity to power the next wave of computing. That spending circulates across the economy: construction, logistics, real estate, and materials, creating a multiplier effect reminiscent of the early internet years."

"Lee pointed out growing unease on Wall Street about OpenAI's massive capital commitments, reportedly as high as $1 trillion over time. He questioned where that money will come from: private equity, strategic partnerships, or another round of funding from existing allies like Microsoft (NASDAQ: MSFT) and Nvidia. I joked that "Nvidia could just loan the money to OpenAI so they can use it to buy more Nvidia chips," calling it the new financial "dance" regulators may someday need to examine."

AI infrastructure spending is lifting U.S. GDP momentum through large investments in data centers, chip foundries, electric utilities, and fiber cabling. Companies like Nvidia are selling record GPU volumes while utilities expand capacity to power increased computing demand. That spending circulates through construction, logistics, real estate, and materials, producing a multiplier effect similar to the internet buildout of the late 1990s. Hardware, networking, and power providers are positioned to capture early gains even as many AI startups seek sustainable business models. Massive capital commitments for leading AI developers raise funding and regulatory questions, creating upside near term and risks ahead.

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