Artificial intelligence relies on more than just software. Semiconductors, vast energy supplies, and critical materials form the backbone of its operations.
Training a cutting-edge model like GPT-4 demands roughly 50 gigawatt-hours of electricity, enough to supply San Francisco for three days.
China leads in producing the world’s rare earth elements and dominates nearly all processing capabilities.
Western nations pursue investments in local mining and refining to build independent supply lines, a process spanning multiple years.
ETFs Targeting the AI Buildout
Exchange-traded funds deliver focused access to the AI infrastructure expansion, spanning semiconductors, power generation, and vital resources.
Understanding AI’s Core Drivers
AI often appears as a software-only domain, yet hardware, energy, and materials propel its growth.
