I built the first iPhone with Steve Jobs. The AI industry is at risk of repeating an early smartphone mistake

Core Insights - The data center boom in America is at risk of becoming a bust unless investments are made in AI applications that address real-life problems such as security, affordability, healthcare, and waste management [1] - Significant capital expenditure (CapEx) is necessary to transition from infrastructure investment to developing applications and services that ensure sustainable returns on investments in data centers [2] - The national demand for electricity is projected to grow by 128 gigawatts over the next five years, while data centers will contribute an additional 93 gigawatts to the grid [3] Investment and Infrastructure - Continued investment in physical infrastructure is essential to support the AI race, with the private sector, including major companies like Amazon, Nvidia, and Google, playing a crucial role [4] - There is a substantial opportunity to develop the application layer that integrates AI into the physical world, ensuring that data center investments yield significant returns [5] - Historical precedents, such as the development of AWS and the App Store, demonstrate the potential for scalable infrastructure to create vast commercial opportunities [6][7]