Friday charts: The photon economy

A new humanoid robot called Neo, designed to assist in household tasks, relies on human guidance to collect essential visual data for autonomous learning. The convergence of embodied AI technologies, such as Tesla's vehicles and Meta's smart glasses, is anticipated to create a colossal market worth trillions. However, AIs require extensive data to improve, suggesting future demands may result in yottabytes of data storage. This sparks interest in solar-powered data centers in space to harness solar energy for AI processing. Despite skepticism regarding the profitability of such moonshot projects, the current frenzy for AI investments is pushing the sector forward, evident in the increasing capital expenditures of major tech firms. Additionally, there are signs of stagnation in U.S. electricity generation and a potential slowdown in data center investments, suggesting challenges in meeting growing energy needs. As discussions around potential interest rate cuts emerge, implications for investment trends and inflation are highlighted, with positive outcomes for the AI sector appearing plausible. Overall, while concerns about job displacements due to automation persist, AI's role in enhancing productivity indicates that the economy may be on the brink of transformative advancements.

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