Chipflation and the New AI Financing Boom

AI demand has sent memory chip prices and semiconductor costs soaring, but the bigger question is whether this is a lasting inflation problem or just another boom and bust cycle for chips.

Mike Armstrong and Paul Lane break down why the AI buildout has pushed up prices for chips, servers, and data center equipment, why semiconductor costs may stay elevated in the short term, and why new supply and innovation could eventually bring prices back down. They also discuss Jensen Huang’s push to make AI chips look like longer-lasting financial assets, why Wall Street may try to create new markets around compute, and the risks that come with financializing semiconductors. Plus, they look at Intel’s $20 billion share sale, why government ownership of Intel complicates the AI investment story, how fear can drive bad retirement decisions, Anthropic’s IPO push, Waymo’s growing pains, and why hybrids are gaining ground as gas prices rise.