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Technology thesis · Artificial Intelligence

high conviction growth

AI infrastructure

AI infrastructure is the most capital-intensive build since the railroads; its constraints – GPUs, power, packaging and optical interconnect – persist through 2027 and decide who competes in AI.

Position maintained continuously · last reviewed Jun 23, 2026

The thesis

Core thesis

AI infrastructure spending has scaled to a ~$700-725B combined big-four capex run-rate in 2026, but the constraint long ago shifted from chip design to delivery. Grid connection and on-site generation decide when capacity comes online; HBM and CoWoS packaging cap how many accelerators can be built; and optical interconnect is now the third limit as coppers reach fails at cluster bandwidths. Chips can be ordered; the power, packaging and data-movement to deploy them at gigawatt scale are the active limits. Facilities that arent built cant be filled with NVIDIA Blackwell or Rubin.

State of the art (2026)

State of the art (2026). The AI build-out is running at gigawatt scale - OpenAI's Stargate sites and xAI's Colossus expansion are measured in GW, not megawatts - and the binding limits are no longer GPUs alone but power and the data-centre interconnect. Grid connection and on-site generation gate when capacity comes online (see brief 962); HBM and CoWoS packaging cap how many accelerators can be built; and optical interconnect has become the third constraint as copper's reach fails at the bandwidth the clusters now need (brief 973). The competitive question is who can secure all three - power, packaging and optics - not who has the fastest chip.

Power is the new constraint

Each Nvidia B200 rack draws 120kW. A single frontier model training run requires 50-100MW sustained power. Grid interconnection queues stretch 4-7 years. Tech companies are signing nuclear PPAs (Microsoft-Helion, Google-Kairos) but these are 5+ years from delivery. The near-term reality is natural gas peaker plants and power purchase agreements with existing utilities — creating a carbon footprint that conflicts with ESG commitments.

The rest of the file

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Signal stack

Evidence stacked leading → lagging

11 signals
talent
research
patent
expert
operational
regulatory
market

Technology-native KPIs

Metrics that predict trajectory, tracked over time

4 tracked
Data center capacity delayed/cancelled
NVIDIA data centre revenue Q1 FY2027
Combined hyperscaler AI capex 2026
Hyperscaler AI capex

Landscape map

Who builds what — and who depends on whom

110 players · 8 layers

Catalyst calendar

Dated events that will move the position

6 ahead

Technology roadmap

Milestones on the path to maturity

12 milestones

Watchlists

Companies, people and papers — each with a remove-by condition

19 · 20 · 2
Companies · 19
People · 20

Decision frameworks

The same call, framed for your desk

Locked
Public Equity
PE / VC
Corporate Leader

Thesis changelog

When our view changed, and why

7 updates

Change our mind

4 disconfirming conditions

Comparable wave

The historical analogue on the S-curve

Common mistakes

What the market gets wrong right now

The rest is inside

You've read the verdict. The file is much deeper.

The full signal stack, technology-native KPIs tracked over time, the landscape of who depends on whom, the dated catalyst calendar, decision frameworks for every desk, live watchlists and the changelog of every time our call on AI infrastructure has changed — all live inside CanaryIQ.