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a16z

2026-10-04 06:29:51

a16z says tech has become the market’s “everything cycle” as AI spending pushes hardware and infrastructure back to center stage

Andreessen Horowitz’s growth team has published the second edition of State of Markets II, arguing that technology is no longer just another equity sector but the main engine of earnings growth across global capital markets. In the report, a16z says the center of gravity inside tech has shifted away from software and toward hardware, semiconductors, power, networking, manufacturing, robotics, and defense as AI buildouts accelerate. The firm describes AI as a generational platform shift and points to a sharp jump in hyperscaler capital expenditures, from about $97 billion in 2020 to an estimated $777 billion in 2026, with spending expected to exceed $1 trillion annually from 2027. It also says 86% of venture capital deal value now goes to AI, up from 15% in 2016. On the public-market side, the report says technology contributed about 76% of total S&P 500 earnings growth through the end of August 2026. The report also pushes back on the idea that GPUs quickly become obsolete, saying rental rates and residual values for older chips such as the A100 have held up or risen. At the same time, it argues that enterprise and consumer AI adoption remains broad but shallow. Software, in a16z’s view, is not facing extinction, but a tougher phase in which growth quality, profitability, and measurable outcomes matter much more.

New York Times: Meta labeled AI data centers as experiments to cut tax bills

The New York Times reported that Meta classified its artificial intelligence data centers as "experiments," a move that could save the company billions of dollars in taxes. According to the report, Meta may qualify for research and development tax credits by categorizing parts of its data center construction as research experiments, sharply reducing its tax burden. The story was based on Meta internal documents and interviews with tax experts. It described how the tech giant used provisions in tax law to improve its financial position.

Amazon

2026-10-03 13:48:28

Amazon to invest more than $1 billion in U.S. data center communities over five years

Amazon said it will put more than $1 billion into communities that host its U.S. data centers over the next five years through its Built Together program, according to Techub News. The funding is earmarked for workforce training, energy-efficiency upgrades for schools and homes, as well as roads, housing, and emergency services. The company also said it has stopped signing non-disclosure agreements with government agencies for data center projects. In addition, Amazon pledged to publish annual reports on its energy use and water consumption. The company said that commitment does not currently extend to private-sector partners. The update focuses on Amazon’s community spending and disclosure practices tied to data center development in the United States. No additional details were provided in the brief on how the spending will be allocated by location or when the first annual report will be released.

Policy Regula

2026-10-03 13:26:00

AI Debt Boom Is Colliding With Long-Term Treasuries, and Success May Still Bring Heavier Taxes

U.S. long-dated Treasuries sold off sharply on Sept. 24, with the 30-year yield rising to 5.48%, the highest level in two decades, and the 10-year yield moving above 5.2%, a post-financial-crisis high. The article argues that large deficits, high oil prices and renewed Federal Reserve tightening remain part of the backdrop, but a newer force has emerged on the demand side: major AI-focused tech companies issuing massive amounts of long-term debt to fund data center buildouts. According to the piece, the five largest hyperscale cloud companies have issued nearly $230 billion in bonds this year as of August, more than double last year’s total, with a large share concentrated in 20-, 30- and 40-year maturities. Examples cited include Meta’s $30 billion 40-year bond sale, another $25 billion deal from Meta in April, Alphabet’s 100-year sterling bond, and Amazon’s $54 billion raise in March. The argument is that these issuers are far less sensitive to borrowing costs because they expect AI returns to outweigh interest expense, drawing long-term capital away from U.S. Treasuries. The article also says AI could deepen Washington’s fiscal strain even if the technology delivers strong growth. It points to lower labor income, weaker payroll-linked tax receipts, and expanded capital-expense deductions under the 2025 "One Big Beautiful Bill Act." It cites Microsoft’s tax payable falling from $14.1 billion to $2.5 billion and notes that U.S. corporate tax receipts dropped 25% in the first 11 months of the fiscal year, while the federal deficit reached $2 trillion.

Supabase

2026-10-03 11:35:10

Supabase raises $150 million and buys Turso as JERA maps out a 400 MW AI project in Japan

WuBlockchain’s WhiteLine Daily highlighted four AI infrastructure developments spanning data centers, database platforms, power-linked compute projects, and chip interconnects. Applied Digital said 75 MW of new capacity at its Polaris Forge 1 campus in North Dakota has reached Ready for Service, lifting operating capacity to 250 MW. Supabase announced a new $150 million round led by GIC, with participation from CapitalG, IronArc, SquarePeg and others, and said it is acquiring database platform Turso. The company said it now adds more than 1 million users and 4 million databases each month, with roughly 70% of new databases created by agents or AI-driven tools. In Japan, JERA, Dell Technologies and RHAELM signed an MOU for a nationwide AI infrastructure framework, with a first project near JERA’s Chiba thermal power plant that could provide up to 400 MW and involve more than $15 billion in capital. Separately, San Francisco-based Volantis raised $88 million to develop optical interconnect technology that it says could link as many as 220 memory chips to a single GPU using VCSEL lasers.

CNBC

2026-10-03 05:24:55

CNBC: Communities in the U.S., Europe and Asia push back on data center buildout as AI boom raises costs

CNBC reported that disputes over data center development, first prominent in the United States, are spreading more broadly across global markets. Communities in Europe and Asia are also pushing back as the boom in AI infrastructure drives up costs. The report said demand for computing power has surged alongside AI development, accelerating the construction of new data centers. At the same time, the expansion is drawing opposition from local communities over rising energy consumption, land use and environmental effects. The report frames the issue as no longer limited to one market, but as a wider reaction to the physical and economic footprint of AI-related infrastructure growth.

data centers

2026-10-03 05:31:32

The workers keeping AI compute online: Data center operators walk 30,000 steps a day as hiring surges

The AI infrastructure boom is usually framed around GPUs, power plants, transformers, land and capital spending. Inside data centers, though, the day-to-day reality depends on people who keep cooling, power, cabling and security systems running without interruption. At a Digital Realty facility in Ashburn, Virginia, chief engineer James Waddy walks roughly 30,000 steps a day inspecting air handling units, server halls, pipes, cables and rooftop condensers, sometimes relying on smell, touch and sound to catch issues before alarms go off. The goal is simple: avoid downtime. That work is becoming more visible as AI demand drives new construction. Data Center Map says the US has about 2,700 operational data centers, nearly 400 under construction and at least 1,500 in planning. Hiring data reflects the shift. Indeed says more than 1 million job seekers searched for data center roles this year, with August searches up eightfold from early 2022. The company also found maintenance and installation workers in data centers earn about 42% more than peers in similar roles elsewhere. Digital Realty says entry-level engineers start around $66,000 a year, while experienced engineers average more than $120,000.

Nvidia

2026-10-02 17:30:40

Nvidia hits fresh record as market value climbs to about $5.7 trillion

Nvidia shares rose to a record $237.88 in Friday morning trading, pushing the chipmaker’s market capitalization to roughly $5.7 trillion and making it the most valuable listed company in the world. The move marked the stock’s first new high since May and extended its rebound to more than 40% from its March 30 low of $165.17. Decrypt noted that Nvidia was worth $1.18 trillion in August 2023, surpassed Apple at $3 trillion in June 2024, and became the first company to reach $5 trillion in October 2025. For comparison, the total crypto market cap currently sits just above $3 trillion. The rally has been backed by continued AI infrastructure demand and a series of recent catalysts. Nvidia said revenue for the quarter ended July 26 reached $96.2 billion, up 106% year over year, with data center revenue contributing $89 billion. CEO Jensen Huang said in the earnings release, 「Now, compute is revenue.」 Earlier this week, the company expanded its share repurchase authorization by $150 billion, bringing the total to $235 billion through fiscal 2028. Decrypt also pointed to Supermicro’s Vera Rubin rack shipments, a weaker-than-expected U.S. jobs report, Nvidia’s investments tied to OpenAI and Anthropic, and $366 billion in multiyear AI infrastructure commitments as factors shaping the market’s view.