Hyperscalers

• A July report from Goldman Sachs reveals that AI infrastructure investment is expanding beyond major hyperscalers to include neoclouds, sovereign projects, and broader enterprise adoption. • The report highlights key deals involving companies such as Meta and IREN, signaling a diversified growth pattern in AI computing capacity. • This shift is significant as it demonstrates that AI integration is moving into global markets and specialized sovereign investments rather than remaining concentrated among a few tech giants.

• The AI boom is generating unprecedented windfalls for Asian chipmakers, particularly in South Korea and Taiwan, creating a global circular flow of capital. • This surge in wealth is mirroring a narrower version of the "Asian savings glut" seen in the late 1990s and early 2000s, which historically kept U.S. borrowing costs low. • The phenomenon matters because these massive profits are being reinvested back into the global economy to fund hyperscalers and AI infrastructure.