Artificial intelligence relies heavily on more than just advanced software. Semiconductors, vast energy resources, and essential raw materials form the backbone of its infrastructure.
Energy Demands Surge for AI Training
Training cutting-edge AI models demands enormous power. For instance, developing a frontier model like GPT-4 required approximately 50 gigawatt-hours of electricity, sufficient to supply San Francisco for three full days.
Critical Materials and Global Dependencies
Rare earth elements, vital for high-performance chips and components, see China dominating production with the majority of global output. The country also holds nearly complete control over processing these materials.
Western Push for Supply Chain Independence
Governments in the West actively fund domestic mining operations and processing facilities to reduce reliance on foreign sources. However, fully reshoring these supply chains remains a complex, multi-year endeavor.
ETFs Offering Exposure to AI Infrastructure
Investors seek targeted exchange-traded funds (ETFs) that capture growth across the AI supply chain. These funds provide diversified access to semiconductors, power generation, and critical minerals essential for the ongoing AI expansion.
