RLFeels the situation in Middle East means only headwind for AI industry
1. Energy price goes up, meaning cost of running data center will go up
2. Increasing energy price feeds into higher inflation exp. This week entire interest rate curve was sold off - cost of funding for AI capex will go up
3. The oil and gas asset getting destroyed means less revenue stream for the gulf countries which are channeling money to AI development through VCs and other types of funds
1. Energy price goes up, meaning cost of running data center will go up
2. Increasing energy price feeds into higher inflation exp. This week entire interest rate curve was sold off - cost of funding for AI capex will go up
3. The oil and gas asset getting destroyed means less revenue stream for the gulf countries which are channeling money to AI development through VCs and other types of funds
Michael Puskar