Great read! The comparison between U.S. and Chinese energy infrastructure also brings to light a critical physical bottleneck: while chips can be shipped, gigawatts of power require long-term grid development that currently can't match the speed of software innovation.
As massive AI capex shifts from being funded by cash flow to external leasing and debt, at what point does the "circular revenue" model transition from a growth
It is disappointing that our energy infrastructure (and infrastructure in general) is so far from being the best in the world and has not received enough investment or attention.
Investing in infrastructure is not as “sexy” as other parts of the economy or political platforms. In addition, the sector is overregulated, making investments too complex and cumbersome. No one wants to deal with the headache of bureaucracy.
The current situation proves that people need a crisis before they start paying attention and taking action.
The profit and political motives that finally incentivize entrepreneurs and politicians to improve the infrastructure show that people are not as benevolent as they claim. This is a perfect example of the Adam Smith’s invisible hand.
The AI boom has exposed the crisis of decaying infrastructure and created the incentives necessary for innovation and investment on both the business and political sides to take place.
The reason infrasture hasn’t seen the speed of innovation like software is precisely because of lack of profitable opportunities, driven by excessive regulation.
This is a timeless pattern that has repeated over the entire existence of human race and will keep repeating itself because politics and special interests will always get in the way of innovation.
Great read! The comparison between U.S. and Chinese energy infrastructure also brings to light a critical physical bottleneck: while chips can be shipped, gigawatts of power require long-term grid development that currently can't match the speed of software innovation.
As massive AI capex shifts from being funded by cash flow to external leasing and debt, at what point does the "circular revenue" model transition from a growth
Thank you!
It is disappointing that our energy infrastructure (and infrastructure in general) is so far from being the best in the world and has not received enough investment or attention.
Investing in infrastructure is not as “sexy” as other parts of the economy or political platforms. In addition, the sector is overregulated, making investments too complex and cumbersome. No one wants to deal with the headache of bureaucracy.
The current situation proves that people need a crisis before they start paying attention and taking action.
The profit and political motives that finally incentivize entrepreneurs and politicians to improve the infrastructure show that people are not as benevolent as they claim. This is a perfect example of the Adam Smith’s invisible hand.
The AI boom has exposed the crisis of decaying infrastructure and created the incentives necessary for innovation and investment on both the business and political sides to take place.
The reason infrasture hasn’t seen the speed of innovation like software is precisely because of lack of profitable opportunities, driven by excessive regulation.
This is a timeless pattern that has repeated over the entire existence of human race and will keep repeating itself because politics and special interests will always get in the way of innovation.
Thank you for the knowledge 👏 well said