US EditionThe Big Wrinkle in the Multitrillion-Dollar AI Buildout
Big Tech is investing over $400 billion in AI this year, adding to $1.6 trillion since 2013 amid fears of a bubble similar to the 1990s dot-com era.
- Big Tech's near-term spending surge includes over $400 billion in AI this year, adding to nearly $1.6 trillion invested since 2013 and fueling sector-wide growth.
- PwC analysts project AI could add $15.7 trillion to the global economy by 2030, reshaping education, transportation, finance, health care, media, and telecommunications.
- Valuations underscore concentration, as Palantir Technologies shares surged about 2,760% and Nvidia recently passed $5 trillion, with Dec. 12 P/S ratios at 23 and 120 respectively.
- Rising data-center investment could strain energy, water, and supply chains, while Professor Gerald Epstein warns AI data centers create short-term economic risk due to heavy dependency.
- Analysts note parallels with the dot‑com era as public companies peaked at trailing 12‑month P/S ratio benchmarks of roughly 30–40 before the bust, highlighting historical precedent.
12 Articles
12 Articles
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Over the last few years, artificial intelligence (AI) has become extremely popular in Silicon Valley and is widely regarded as the most transformative technology in the 21st century. In fact, it is already reshaping sectors like education, transportation, finance, health care, media, and telecommunications. Indeed, it is estimated that about 60 percent of jobs in advanced economies may be impacted… Source
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