The artificial intelligence boom is not running out of money. It may run out of infrastructure first.
That is the key argument emerging from a new weekly analysis by Jordi Visser, head of AI Macro Nexus Research at 22V Research, who says the market is underestimating the physical-world constraints behind the AI buildout.
"The deeper point is that this is a physical-world capex cycle, not a software one," Visser said.
According to the expert, only about 12% to 18% of a projected $8 trillion AI infrastructure buildout has been completed so far, even as signs of stress are already appearing across supply chains.
The bottlenecks are everywhere: high-bandwidth memory chips, liquid cooling systems, copper, fiber, substations, gas turbines and power infrastructure.
