The artificial intelligence boom has triggered one of the most expensive infrastructure expansions in modern history. From North Dakota to Texas, vast data centres are rising, packed with billions of dollars’ worth of chips. Top four technology companies have committed more capital to AI infrastructure in three years than it cost over four decades to construct the U.S. interstate highway system, at constant dollars. But the payoff is uncertain since today's AI revenues are still small compared with money being spent, the Wall Street Journal reported.

A risky business model

Firms such as CoreWeave rent data centres, put in Nvidia chips, and sublease computing capacity to AI companies, a model driven by high-interest finance and long-term leases. The financing is risky since customer contr

See Full Page