The great AI buildout shows no sign of slowing

Core Insights - The technology sector is experiencing a significant boom in artificial intelligence (AI) infrastructure, with no signs of slowing down despite discussions of a potential bubble [1][3] - Nvidia has become the first company to exceed a market value of $5 trillion, while OpenAI is preparing for an IPO that could value it at $1 trillion [2] - Major companies like Microsoft and Amazon are heavily investing in AI, with Microsoft and Alphabet expected to spend around $350 billion combined this year [5] Company Developments - Microsoft and OpenAI have formed a partnership that enhances OpenAI's fundraising capabilities [2] - Amazon announced a reduction of 14,000 corporate jobs, coinciding with its cloud unit reporting the strongest growth in nearly three years [2] - Caterpillar's data center division saw a 31% increase in sales, indicating strong demand in the AI infrastructure space [4] Industry Trends - Over 100 non-tech global companies have acknowledged their involvement with data centers, highlighting the widespread impact of AI across various sectors [4] - The AI supply chain is expanding beyond core technology to include power, industrials, and cooling technology, prompting investors to consider the entire ecosystem [5] - Goldman Sachs projects that global AI-related infrastructure spending could reach between $3 trillion and $4 trillion by 2030 [5] Economic Impact - AI investment is significantly influencing global trade, with approximately 60% of U.S. data center capital expenditures directed towards imported IT equipment, particularly semiconductors from Asia [6] - Companies representing over $21 trillion in market value have reported earnings or discussed AI, with many noting early signs of productivity gains [6] - The future contribution of AI in research and development is expected to grow, as indicated by Schindler's CEO, who raised the company's annual margin forecast [7]