The Infrastructure Thesis

  Artificial intelligence is often described as a software revolution. But behind the rapid growth of AI applications lies a powerful hardware cycle. Every major expansion in AI capability requires a corresponding expansion in physical infrastructure. When new AI models become more powerful, demand for computing rises. This demand quickly spreads across several layers of hardware. First comes the demand for advanced semiconductors. Graphics processing units and specialized AI chips provide the raw computing power required to train and run large models. When AI adoption accelerates, chip demand increases sharply. But chips alone are not enough. Once chips are produced, they must be installed into servers. Server manufacturers assemble systems that combine processors, memory, storage, and networking components into functional computing units. These servers are then deployed inside large data centers. As server installations increase, data center const...