When AI hype meets AI reality: A reckoning in 6 charts

WALL STREET JOURNAL

The rate at which tech companies and startups are investing in AI shows no signs of slowing. In their latest financial reports, all of the big spenders revealed that their current investments had grown significantly, and projected that this trend would continue.

There is effectively “infinite” money available right now to build out new data centers, says Jim Schneider, a senior research analyst at Goldman Sachs. All this investment has translated into record spending on the stuff that goes into data centers—aka “AI supercomputers”—all those chips, servers, HVAC systems, transformers, gas turbines, power lines and power plants.

There are absolute, physical limits to how quickly all of that can be delivered. As a result, some projects are already being delayed.

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