The cheapening of technology coexists with an investment race that would lead major infrastructure suppliers in the United States and China to spend nearly $1 trillion in capital expenditures during 2026.
Epoch AI estimates that achieving a fixed yield of artificial intelligence costs about 13 times less per year than in 2023. The drop in prices coincides with plans by the largest technology in the United States to invest up to $725 billion in capital expenditures during 2026, mainly in equipment for AI data centers. The question is whether there will be enough demand to take advantage of all that capacity.