Buildout

• Tech giants are aggressively expanding their data center infrastructure to support AI, leading to a significant depletion of cash reserves. • To fund these ambitious buildouts, companies are increasingly relying on raising debt, making them more sensitive to fluctuations in the bond market. • This shift matters because rising interest rates increase borrowing costs, potentially making large-scale AI expansions more expensive and difficult to sustain.

• Alphabet has priced a nearly $85 billion equity raise specifically to fund the expansion of its AI infrastructure. • The deal is anchored by a significant $10 billion investment from Berkshire Hathaway. • This massive capital injection highlights that the AI race has evolved from a purely technological competition into a test of capital market strength.

• SoftBank has committed $87.3 billion to develop AI infrastructure in France, marking the company's largest investment of its kind in Europe. • The funding is specifically targeted toward building 5 gigawatts of data center capacity to support growing artificial intelligence demands. • This massive investment underscores France's strategic importance as a hub for AI development and high-performance computing.