The surge in investment towards AI data centers is not just a tech trend; its a seismic shift in the US economy. With major players like Microsoft, Alphabet, Meta, and Amazon projected to spend around $370 billion on capital expenditures by 2025, the implications are profound. This influx of capital, particularly from Microsofts staggering $35 billion investment last quarter, highlights how a single technology can dominate financial resources at an unprecedented pace.

Since the launch of ChatGPT, the American economy has experienced a striking divergence: job openings have plummeted by 30%, while the stock market has surged by 70%. This phenomenon, dubbed the “scariest chart in the world,” raises questions about the impact of artificial intelligence on the job market. However, economist Derek Thompson argues that the narrative is more nuanced, pointing to monetary policy as a significant factor behind these trends.