As AI expands, Americans have doubts

Overview

This episode explores the economic and societal implications of artificial intelligence (AI) as it rapidly integrates into various industries. It also examines the surging price of gold, its impact on global financial systems, and the rise in durable goods orders driven by technological advancements. The episode features a tour of a data center, highlighting the infrastructure powering AI and the digital economy.

Notable Quotes

- I'm rooting for natural intelligence. That's what I'm rooting for. – Professor Enid Baxter-Rice, on her concerns about AI's impact on society.

- The problem we have right now with power is there's not enough on the grid. – Miley Kaiser, on the challenges of scaling data centers to meet AI demands.

- Gold is one of the things they see as being money good. – Samir Samana, on why investors are turning to gold amidst global uncertainty.

💰 The Soaring Price of Gold

- Gold prices have reached unprecedented levels, surpassing $5,000 per ounce, nearly doubling in a year.

- Central banks are diversifying their reserves, with gold now accounting for 28% of holdings, surpassing U.S. Treasury bonds.

- Factors driving gold's rise include geopolitical tensions, trade wars, and investor anxiety over traditional financial assets.

- Some experts, like Jennifer Lee from Bank of Montreal, suggest this trend reflects diversification rather than a wholesale rejection of U.S. assets.

📈 Durable Goods and AI Investment

- Durable goods orders rose over 5% in November, driven by Boeing's aircraft sales and increased spending on AI-related technologies.

- Businesses are upgrading outdated equipment, spurred by tax incentives and the need for advanced machinery.

- Economists like Bernard Yaros note that while uncertainty from tariffs persists, AI investments in data centers and computing are significant growth drivers.

🤖 AI's Rapid Expansion and Public Backlash

- AI contributed nearly 1% to the U.S. GDP in 2025, but public sentiment remains skeptical, with concerns about job displacement, privacy, and societal impacts.

- Communities like Hobart, Indiana, are protesting AI data centers due to fears of noise, pollution, and rising electricity costs.

- Professor Enid Baxter-Rice observes increased anxiety and distraction among students, exacerbated by AI tools like ChatGPT.

🏢 Inside the Data Centers Powering AI

- Data centers, like those operated by CoreSight, are critical to the AI economy, housing thousands of synchronized computers.

- These facilities consume massive amounts of energy, with data centers projected to use nearly 10% of U.S. electricity by 2030.

- CoreSight's Miley Kaiser emphasizes the efficiency of co-location facilities but acknowledges the strain on power grids and the need for sustainable solutions.

🌐 The Physical Infrastructure of the Digital Economy

- Despite the perception of the internet as intangible, it relies on physical infrastructure like cables, servers, and data centers.

- Hyperscale data centers by companies like Microsoft and Google focus on AI model training, while co-location centers serve diverse industries.

- The episode highlights the paradox of AI's promise versus its environmental and societal costs, as the digital economy becomes increasingly central to modern life.