THE COST OF CONSTRUCTION IN AI HAS EXACERBATED THE FED'S INFLATION STRUGGLE

Silicon Valley leaders such as Elon Mask and CEO Sam Altmann of OpenAI were keen on the deinflation effect of artificial intelligence, but the reality is that AI’s construction costs are exacerbating the Fed’s inflation struggle. Capital spending on AI construction in the United States is expected to reach $581 billion this year, possibly as high as $1 trillion globally. At the same time, access to AI has been slower than expected, leading to increased inflationary pressure in the short term. Federal Reserve Chairman Kevin Walsh noted that AI ' s cost and inflation issues were complicating its decision-making. While AI may bring productivity gains in the future, current cost pressures are evident。