Silicon Valley figures have predicted AI would lift productivity and cut costs, bringing deflation. An analysis says reality is different. While company adoption is slower than expected, trillion-dollar investment in data centres and AI infrastructure is creating supply chain bottlenecks and pushing up power and equipment prices. Economists and executives say measurable productivity gains may take time. Fed officials are split, as rising electricity and related costs add inflation pressure.

SoftBank Group Chairman and CEO Masayoshi Son said the era in which humans sit atop living beings will end as artificial intelligence spreads, and that humans must evolve into “superhumans” to survive. Speaking at a SoftBank World 2026 special lecture, he set out a 2040 vision for AI, forecasting huge market size, profits and power demand from data centres. He rejected claims of an AI investment bubble as misguided.