Mapping out the current state of AI markets: Most value has...

Mapping out the current state of AI markets:

Most value has accrued to the semiconductor ecosystem ($130B+ in revenue this year from AI) and the data center buildout (number of US data centers is expected to double in the next four years).

Energy is a legitimate bottleneck to the data center buildout, and hyperscalers/developers are aggressively acquiring real estate with power availability.

The cloud companies are at a ~$20B run rate, with Microsoft generating ~$5B of that.

We’re seeing increasing interest in AI applications but little large scale value creation yet.

The AI app layer will ultimately determine the value of the industry as the current infrastructure buildout will become a bubble without value creation on the back end.