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AI capex is so big that it's affecting economic statistics
AI capex is so big that it's affecting economic statistics, boosting the economy, and beginning to approach the railroad boom
One analyst recently speculated (via Ed Conard) that, based on Nvidia's latest datacenter sales figures, AI capex may be~2% of US GDP in 2025, given a standard multiplier. Price-earnings multiples on public AI "plays" are soaring, reflection disproportionate investor allocation to these companies, and less to others, who can no longer obtain capital as cheaply. AI datacenters are short-lived, asset-intensive facilities riding declining-cost technology curves, requiring frequent hardware replacement to preserve margins.
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