Eric Schmidt's acquisition of Relativity Space suggests his goal is to launch substantial computing infrastructure into space, addressing the growing energy demands of AI data centers. During a recent congressional hearing, Schmidt highlighted the expected increase in energy requirements for data centers, proposing that space-based operations could help meet these needs through solar power and heat dissipation in the vacuum of space.

Cisco has introduced the P200 chip, designed to enhance connectivity between AI data centers over long distances while significantly reducing power consumption by 65%. This new technology simplifies data synchronization across multiple centers, addressing the challenges posed by increasing cloud and AI demands.

A recent analysis reveals that investment in AI data centers accounts for 92% of U.S. GDP growth in early 2025, highlighting a stark contrast with the broader economic stagnation. While this surge in spending by tech giants raises concerns about a potential industrial bubble, experts argue that it is essential for meeting the soaring demand for computational power in AI.

The U.S. economy's growth is heavily reliant on AI investments, with data centers significantly boosting GDP figures. Despite a reported recovery, the underlying economy shows weakness as non-AI sectors struggle to grow, raising concerns about long-term sustainability without broader economic support. The article emphasizes that while AI infrastructure is booming, the overall economic landscape remains narrow and vulnerable.

Meta Platforms is in discussions to raise $29 billion from private capital firms to construct artificial intelligence data centers in the U.S. The company is engaging with several major investors, including Apollo Global Management and KKR, amidst rising demand for AI computing power.

Keith Heyde, newly appointed head of infrastructure at OpenAI, is leading the search for sites to build the company’s next-generation data centers, aimed at supporting the training of advanced AI models. With around 800 proposals received, about 20 sites are in advanced review, focusing on factors like power access and community support rather than just tax incentives. OpenAI's ambitious expansion includes a significant partnership with Nvidia, which is investing up to $100 billion to support the infrastructure needed for AI development.

The Trump administration has announced an action plan aimed at accelerating the use of artificial intelligence in the U.S. by reducing regulatory barriers and boosting exports for tech companies. The plan includes directives for federal agencies to eliminate regulations that hinder the development of AI infrastructure, particularly data centers essential for training AI models.

AI data center startup Crusoe is raising $1.38 billion in a Series E funding round, reaching a valuation of approximately $10 billion. The round is co-led by Valor Equity Partners and Mubadala Capital, with participation from notable investors like Nvidia and Fidelity Management. Since its founding in 2018, Crusoe has raised nearly $3.9 billion and has recently launched the first phase of its data center in Texas.

Oracle's co-CEOs, Mike Sicilia and Clay Magouyrk, are advocating for the company's significant investment in new data centers, which they claim will enhance AI capabilities for businesses. They emphasize the provision of applied AI through infrastructure, analytics, and applications.

Amazon has decided to scale back its ambitious AI data center plans, following a similar retreat by Microsoft. The move reflects the growing caution in the tech industry regarding the rapid expansion of cloud infrastructure amid economic uncertainties and changing market demands.

AMD is focusing on developing its AI capabilities through a new architecture called Rack Scale Helios, which aims to enhance performance and scalability for data centers. The initiative is designed to leverage advanced chip technologies and optimize resource allocation for AI workloads. This strategic direction positions AMD to compete more effectively in the growing AI market.

Nvidia is investing $1 billion for a 2.9% stake in Nokia, aiming to collaborate on artificial intelligence networking solutions and data centers. This partnership has driven Nokia's shares to their highest level in nearly a decade, with expectations for revenue contributions starting from 2027.

As demand for electricity surges due to the AI boom, tech companies are constructing their own power plants to bypass the slow U.S. power grid. Projects like OpenAI's Stargate in Texas and Elon Musk's data centers in Memphis highlight this trend, as firms seek quick fixes amid supply chain and permitting challenges.

The article discusses the significant underutilization of artificial intelligence data centers in China, highlighting that many facilities are operating far below their capacity. Despite investments and the rapid growth of AI technologies, a considerable number of these centers remain largely unused, raising concerns about efficiency and resource management in the sector.

Qualcomm is expanding its business beyond smartphone modems by introducing new AI chips aimed at data centers, set to launch next year. This move comes as the company seeks to diversify its revenue streams following the loss of major clients like Huawei and Apple's chip development efforts.