The Infrastructure Thesis

  The early narrative around artificial intelligence suggested a simple idea. Compute is infinite. Cloud platforms promised virtually unlimited computing power. If more capacity was needed, companies could simply rent more servers. But the rapid expansion of AI is beginning to challenge this assumption. Compute is not infinite. It depends on physical systems. Every AI workload requires processors, memory, networking hardware, and electricity. Each of these components must be manufactured, installed, and powered. The scale of modern AI systems makes this reality more visible. Training large models requires thousands of GPUs operating simultaneously. These processors must be connected through high-speed networks and supplied with enormous electricity. Building this infrastructure takes time. Factories must produce chips. Data centers must be constructed. Power grids must supply electricity. These constraints mean compute cannot expand instantly. ...