> AI datacenter spending is massive, but if you add it all up, it doesn't cover half of a years worth of government spending.
I didn't check your math here, but if that's true, AI datacenter spending is a few orders of magnitude larger than I assumed. "massive" doesn't even begin to describe it
The US federal budget in 2024 had outlays of 6.8 trillion dollars [1].
nVidia's current market cap (nearly all AI investment) is currently 4.4 trillion dollars [2][3].
While that's hardly an exact or exhaustive accounting of AI spending, I believe it does demonstrate that AI investment is clearly in the same order of magnitude as government spending, and it wouldn't surprise me if it's actually surpassed government spending for a full year, let alone half of one.
Global datacenter spending across all categories (ML + everything else) is roughly 0.9 - 1.2 trillion dollars for the last three years combined, I was initially going to go for "quarter of the federal budget", but picked something I thought was more conservative to account for announced spending and 2025 etc. I pick 2022 onward for the LLM wave. In reality, solely ML driven, actual realized-to-date spending is probably about 5% of the federal budget. The big announcements will spread out over the next several years in build-out. Nonetheless, it's large enough to drive GDP growth a meaningful amount. Not large enough that redirecting it elsewhere will solve our societal problems.
I didn't check your math here, but if that's true, AI datacenter spending is a few orders of magnitude larger than I assumed. "massive" doesn't even begin to describe it