a16z: every $100 into AI buildout sends $50 to chips, $20 to power; 100+ charts
demian_ai · x · 2026-10-02
a16z released State of Markets II (100+ charts) breaking down where AI buildout money goes: of every $100 flowing into the supply chain, $50 goes to chips, $20 to power, $15 to networking, and $15 to cooling, buildings, and land. The report argues tech is now "the everything cycle," contributing 76% of S&P 500 earnings growth in 2026, with capital rotating from bits (software) to atoms (hardware). Demian AI extrapolates a 2028 structure: chips down to $45, power up to $26, networking $16, cooling/facilities $13.
Related event: a16z Report: Chips Take Half of AI Infrastructure Spending(2 posts)→
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