This episode examines the unprecedented global capital expenditure in Artificial Intelligence (AI) infrastructure. It quantifies this investment, currently estimated at approximately ÂŁ410 billion annually, highlighting that this "Silicon Stimulus" is significantly propping up US GDP growth, masking underlying economic weaknesses.
The report draws parallels with historical infrastructure booms like the 19th-century railroad expansion and the dot-com era's telecom buildout, noting that the AI boom's scale already surpasses the latter. A critical distinction is the short lifespan of AI hardware, particularly GPUs, which have an effective useful life of only one to three years, creating a "Capital Maintenance Trap" that necessitates continuous, massive investment.
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