Hyperscalers: $741B AI Spend Triggers Inflation Wave

Hyperscalers are pouring $741 billion into AI infrastructure this year, a 75% jump from last year, creating a demand shock for memory chips that now lifts costs for every electronic device from iPads to Xbox consoles. Apple and Microsoft raised prices on MacBooks, iPads and Xbox units the same day while Nintendo and Sony acted weeks earlier, confirming the shortage hits the entire hardware supply chain at once. Tim Cook called the cost surge the steepest he has seen in four decades, and with most of the capex still unspent the pressure is only beginning, forcing the Fed to weigh prolonged higher rates against productivity gains that UBS says remain years away.