The David Lin Report · Tuesday, September 1, 2026
Federal Reserve Chair Kevin Warsh noted that significant economic growth has been fueled by advancements in Artificial Intelligence, with substantial capital pouring into AI infrastructure. He highlighted that token sales for leading AI labs alone exceed $100 billion annually, a 500% increase in 12 months, and that over half of recent business capital expenditure growth is linked to AI build-outs.
“We've come to a hinge point in history, to borrow a phrase of framing from my former mentor George Schultz. To cite the clearest example, progress in AI, the 80-year-old name for the newest technology, has been faster even than its evangelist predicted just a couple of years ago. The potential for substantially higher growth is on the rise. Ever expanding pools of capital pouring into AI related infrastructure of all sorts. A kind of Moore's law seems to be playing out. Scaling laws too are changing both the method and speed of innovation. Capital and labor have combined to create large language models at the heart of AI. Users buy tokens to gain access to these models. Reports put annualized token sales for the two leading labs alone at more than $100 billion. An increase of 500% from just 12 months ago.”
“More than half of the CapEx growth can likely be ascribed to the build out related to AI.”