In a momentous week for technology, AI infrastructure growth shows no signs of slowing. Nvidia surpasses $5 trillion market value, while Microsoft and OpenAI ink a deal for a potential $1 trillion IPO. Amazon cuts 14,000 jobs as its cloud unit sees strong growth. AI cements itself as a major corporate investment catalyst.

Global companies across various sectors are investing in data centers for AI. Caterpillar’s data center division sales jump 31%. AI supply chain expands to power, industrials, and cooling tech. Goldman Sachs estimates $3-4 trillion in AI-related spending by 2030, with major tech companies expected to spend $350 billion this year.

AI investment boosts global trade, with U.S. data centers importing IT equipment. Companies with $21 trillion combined market value report AI gains. Apple increases AI investment, and Amazon plans $125 billion in capital spending by 2025. Equity values climb 46% since ChatGPT’s debut, one-third from AI-linked companies.

Analysts warn of quickening replacement cycles for AI-related equipment. AI chip useful life shrinks to five years, forcing faster asset write-downs. AI spending widens investment-return gap, with sales-to-capex ratios falling. Companies explore debt financing for AI projects. Economists see AI cycle far from exhausted, with Goldman estimating current AI investment at less than 1% of U.S. GDP.

Read more at Yahoo Finance: The great AI buildout shows no sign of slowing