For months, if not years, AI has dominated speculation about the future, which has fuelled speculation in the present. AI-related ventures are largely responsible for the rapid increase of the S&P 500 stock index. Investment in data centres is a major contributor to the rise in US interest rates as borrowing for construction competes for credit with a deficit-prone federal government.
With so much investment riding on a fast-developing new technology, what happens if the cash flow and profits of the hyperscalers building data centres, and of AI firms renting that infrastructure (two catego...