Here’s why the U.S. is going all in on AI!
| From the desk of Miles Everson: Happy midweek! I’m thrilled to talk about another investing insight for today’s “The Independent Investor.” Every Wednesday, I tackle investing insights and strategies in the hopes of helping you attain financial freedom through this activity. Today, I’ll be taking a deep dive on AI and its global implications. Ready to know more? Continue reading below! |
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Here’s why the U.S. is going all in on AI! Experts and industry observers are expecting a seismic shift in AI spending and technological advancement. This comes as global annual investments in data centers—the backbone of AI infrastructure—are forecasted to massively increase from USD 300 billion to about USD 900 billion by 2027. On the technical side, autonomous agents are expanding the capabilities of AI. For those who may not be familiar, these agents function similarly to AI chatbots, but are more powerful in their functions and can handle specific and complex tasks like conducting deep research, creating coding solutions, and analyzing cybersecurity threats. Due to the various applications and benefits of AI as a whole, nations are scrambling to secure their positions in an AI-driven future. Take the U.S. for example… Right now, federal funding, government mandates, and corporate initiatives are being rolled out to cement the U.S.’ dominance in advanced AI technologies. For today’s “The Independent Investor,” we’re going to take a deep dive into the U.S.’ public and private investments into AI and how this could dictate the global balance of power. A Long History of Tech Leadership The U.S. currently holds about 70% of global compute—resources needed to perform AI tasks and workloads. Also, it’s quickly adopting this technology for infrastructure and cybersecurity. On the public side, the Department of Government Efficiency (DOGE) is spearheading efforts by recommending federal agencies to funnel billions of dollars into defense, research, and other industry applications of AI to secure U.S. dominance in advanced AI systems.
On the private front, companies like NVIDIA and Microsoft are pouring resources into AI. The former’s graphics processing units (GPUs) power much of today’s AI infrastructure while the latter’s cloud computing platforms are crucial in scaling AI applications. As demand for advanced chips and cloud services soar, these firms will be relied on. This opportunity isn’t lost on them, as they’ve been pouring billions to meet demand. Newer entrants into the space are also carving out their niche by offering solutions that improve data center efficiency and enhance AI solutions. An Opportunity and A Challenge While these developments have enormous potential, it should be noted these AI systems aren’t perfect nor cost-efficient. Depending on the complexity of tasks, AI agents can cost tens of thousands of dollars to run and maintain. And like most technology, it will take some time to attain operational efficiency. By early 2026, AI could help streamline operations and cut costs for most sectors. Tech and finance are likely to become early adopters, with sectors like real estate and energy following suit. Even though AI has lots of potential in revolutionizing all facets of life, the revolution it’ll bring won’t be all smooth sailing. It will fuel market volatility and many firms crumble under the weight of overhyped promises. Due to this, investors will find themselves tempted to throw all of their money at any so-called “AI leader.” However, top AI users and spenders like the U.S. government will look for companies that can both ride the wave and shape the direction of the AI revolution. This is exactly the kind of thinking investors like you should adopt. Hope you’ve found this week’s insights interesting and helpful.
Stay tuned for next Wednesday’s The Independent Investor! For centuries, investors have sought safety in assets that promise stability during turbulent economic periods. Learn more about why we don’t encourage you to buy or invest in gold in next week’s article! |
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
