Investment in artificial intelligence, and hyperscaler capex in particular, is a big deal for inflation, interest rates and asset prices. It might not propagate the deflationary wave that many anticipate.
In fact, it could be quite inflationary. To the extent that AI helps boost productivity, or output per hour worked, while disintermediating vast swaths of the workforce, as many allege, it could be disinflationary in the long run.
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