The Algorithm’s Appetite: A Chronicle of Infrastructure

It was late in the previous year that the pronouncements emanated from the Oracle of OpenAI, Mr. Altman, detailing a commitment—a staggering, almost profligate—of 1.4 trillion dollars. This sum, he declared, was to be dedicated to the construction of additional computational capacity—thirty gigawatts, to be precise. A gigawatt added each week, as if to feed a ravenous, insatiable machine. Each unit currently carries a price tag equivalent to the annual gross domestic product of a modest nation. One cannot help but ponder whether such declarations are born of genuine intent or merely the desperate articulation of ambition exceeding available means. But the statement, regardless of its ultimate veracity, serves as a stark testament to the deluge of capital now flowing towards the foundations of artificial intelligence—a new and unsettling architecture of power.

Thus, the manufacturers of silicon, the custodians of data centers, and even those who harness the very currents of electricity find themselves beneficiaries of this digital land rush. Three entities, in particular, appear poised to reap the most substantial rewards. But let us not mistake profit for progress, nor abundance for genuine benefit. This is not a rising tide lifting all boats, but a concentrated flow enriching a select few while obscuring the true cost—the erosion of individual agency and the increasing opacity of the systems that govern our lives.

The Silicon Sovereign

Let us begin with the most visible of these beneficiaries: Nvidia. A name now synonymous with the very engine of this new intelligence. The great developers—those who craft the algorithms that will shape our future—all rely upon its hardware. Even Alphabet, that behemoth striving for self-sufficiency with its Tensor Processing Units, continues to seek the assistance of Nvidia’s offerings. A curious dependence, indeed, for a company so intent on dominion.

Nvidia controls approximately 85% of the market for chips essential to artificial intelligence. A dominance that has inflated its market capitalization to a colossal 4.58 trillion dollars. Its quarterly revenue, as of the third quarter of the current year, exceeded 57 billion dollars—a 62% increase year over year. A figure that speaks not of innovation, but of the concentration of power.

Though competitors—Advanced Micro Devices and Qualcomm among them—attempt to challenge its position, Nvidia remains firmly entrenched. In the last reported quarter, its graphics processing units were sold out, and its new Blackwell chip—a testament to relentless engineering—is already in high demand. The entire market, it seems, holds its breath with each earnings report. This near-monopoly, while perhaps inevitable in the current climate, is nonetheless a cause for concern—a single point of failure in a system increasingly reliant on its capabilities.

The Hunger for Remembrance

Artificial intelligence possesses an insatiable appetite—not merely for power, but for resources of all kinds—chips, electricity, water. But it is the demand for memory—random access memory and dynamic random access memory—that is creating the most acute shortages. A poignant irony, that a technology designed to enhance our cognitive abilities should be so reliant on the very materials that underpin our own fragile memories.

TrendForce, a research firm based in Taiwan, predicts that prices for DRAM will rise between 50% and 55% in the first quarter of the coming year. Those who manufacture this vital component are witnessing a dramatic surge in revenue—a testament to the power of scarcity.

Consider Micron Technology, which has strategically exited the consumer PC memory market to capitalize on the demands of the artificial intelligence sector. A calculated withdrawal, demonstrating a clear understanding of the shifting landscape.

In its most recent quarter, Micron reported revenues of 13.6 billion dollars—a 57% increase year over year. Its gross profit margin stands at 45.3%, and its operating margin at 32.5%. Free cash flow surged by an almost unbelievable 7,852%, and operating cash flow grew by 159%. Such figures are not merely impressive; they are indicative of a fundamental shift in the balance of economic power.

Despite this growth and the immense opportunity before it, Micron trades at a price-to-earnings ratio of only 21.8—lower than it was in the previous year and considerably lower than Nvidia’s current ratio of 46.1. Its share price has climbed by 394% in the past twelve months. Micron offers not only ballistic growth but also an attractive valuation—a rare combination in the current market. It is poised to be a significant beneficiary of increased spending on artificial intelligence infrastructure. The company is breaking ground on new factories in New York and Singapore—a testament to its confidence in the future.

The Electric Current

One of the more subtle, yet significant, demands of artificial intelligence is power. Data centers are already voracious consumers of electricity, and the International Energy Agency expects their needs to double by the end of the decade. A troubling prospect, given the ongoing climate crisis.

In America, Virginia has become the epicenter of data center construction. Of the 3,000 data centers under construction or planned across the country, almost 600 are located in Virginia. This, on top of the 663 already operating in the state. A concentration of power, both literal and figurative.

Such is the demand that Virginia, a state with a population of almost 9 million, has surpassed California, with a population of 39.5 million, as the largest importer of energy in the country. A stark illustration of the shifting economic landscape.

Dominion Energy, the largest power company in Virginia, stands to benefit from this surge in demand. Its geographical location—at the heart of America’s data center buildout—is its most valuable asset. The company reported 8.36% year-over-year revenue growth in its most recently reported quarter—brisk growth for a utilities company. Its gross profit margin stands at 49%, and its operating margin at 29.4%. All those Virginia data centers will require electricity, and Dominion is first in line to provide it. A predictable outcome, perhaps, but one that underscores the concentration of wealth and power in the hands of a few.

2026-02-06 09:13

The Silicon Sovereign

The Hunger for Remembrance

The Electric Current

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