AI Infrastructure Investment Surpasses Housing, U.S. Economic Engine Shifts Gears | Rewire News Briefing

The money spent on data centers in the U.S. has for the first time surpassed that spent on housing. The engine of economic growth is shifting from bricks to chips, but the debt incurred for this transition is already showing signs of trouble.

1｜U.S. Data Center Investment Exceeds Housing for the First Time, Six Supercomputing Companies Rewrite Economic Structure

According to data from the U.S. Bureau of Economic Analysis, spending on information processing equipment reached $752 billion in the second quarter of 2026, surpassing housing investment of $748 billion for the first time. San Francisco Fed Vice President Shapiro called this a "key turning point for the U.S. economy." Spending on information processing has surged 51% since early 2021, while housing investment has declined by 18%.

S&P Global estimates that capital expenditures for six supercomputing companies will rise from $470 billion in 2025 to $1.3 trillion in 2027, but their collective operating cash flow will turn negative in 2026 and 2027. The Information reports that data center debt associated with Jane Street is showing signs of deterioration, with yields around 9%. An NBC poll shows that 64% of voters are unlikely to support candidates who propose building data centers in their communities. Warning lights are flashing on both the financing and voting fronts.

(Source: Fortune / U.S. Bureau of Economic Analysis / S&P Global / The Information / NBC News Poll)

2｜Rising Oil Prices Force Americans to Choose Between Gas and Groceries, Trump Calls It a "Cheap Price"

The national average price for gasoline has risen to $4.44 per gallon, nearly a 50% increase since before the Iran war. CNN estimates that since the war began, American consumers have spent an additional $100.9 billion on fuel, averaging about $770 per person. Fortune opens with the scenario of a 28-year-old Amazon delivery driver: "This week, should I buy groceries or fill up my tank?"

Last week, Trump referred to high oil prices as a "cheap price." The CEO of Dollar General revealed at a Goldman Sachs conference that consumers with an annual income of $100,000 no longer feel like they belong to the high-income group and are increasingly turning to discount stores. The University of Michigan's consumer confidence index fell to 47.8 in September, the second lowest on record.

Fortune's analysis points out that the U.S. economy has undergone a "systemic transformation": the confluence of AI construction borrowing, federal deficits, and geopolitical energy shocks has pushed long-term interest rates higher. It is not a single war that has caused inflation, but rather a change in the structure itself.

(Source: Fortune / CNN / Dollar General / University of Michigan Consumer Survey)

3｜Countdown to U.S.-China Summit: Secretary Yellen and Vice Premier He Lifeng Meet at JPMorgan Headquarters, Huawei on Trial in Brooklyn the Same Week

U.S. Treasury Secretary Yellen and Chinese Vice Premier He Lifeng began talks on Sunday at JPMorgan's headquarters in New York, covering topics such as AI technology regulation, the extension of the tariff truce (set to expire on November 10), rare earth export restrictions, and Iranian oil. This is a pre-negotiation for the summit in Washington on September 24.

(Source: Al Jazeera / CNBC / Fortune / U.S. Department of Justice)

4｜Gemini's Stock Price Drops 80%, Sparking Acquisition Speculation, SEC's Tokenized Stock Framework Launched

Gemini's stock price has fallen about 80% since its IPO, with its market value shrinking from $4 billion to $753 million. Trading volume, revenue, and platform assets continue to decline, with a 25% workforce reduction and exit from multiple international markets. The Winklevoss twins hold 94.5% of the voting rights, and ARK Invest previously proposed that Hyperliquid acquire Gemini as a regulated entry point into the U.S.

In contrast, the SEC's newly launched tokenized stock exemption framework paves the way for another batch of companies. The five-year rule allows tokenized stocks to be traded on public chains through AMM while retaining dividends and voting rights. Analysts believe Coinbase, Robinhood, and Circle are among the earliest beneficiaries.

The industry is diverging: those with compliant infrastructure gain policy access, while those without either get acquired or disappear. The Wall Street Journal reported that in February, someone laundered $10 million through Polymarket using stolen credit cards, and the CEO told employees to prioritize growth over compliance. The CFTC has intervened in the investigation.

(Source: CoinDesk / SEC / Wall Street Journal / ARK Invest / CFTC)

5｜FBI Director Claims AI Usage Increased by 605%, But No One Knows the Baseline

FBI Director Patel stated on Fox News that AI usage at the FBI has "increased by 605%" since he took office, claiming that "every major tech company" has "embedded" the FBI. 139 AI use cases have been approved (up from 50 in February), covering threat detection and data processing, and he also claimed that AI helped prevent a school shooting.

What is the baseline for the 605% increase? What does "embedded" mean in terms of business arrangements? There are no answers. AI is transitioning from a technical tool to a political asset, with "we used more AI" becoming a measure of administrative efficiency.

CNBC reports that AI and data centers have for the first time become issues of public concern in the midterm elections. The Congressional Black Caucus was dominated by the impact of data center communities, and the CEO of Microsoft AI publicly stated that China is not using AI regulation as an excuse to back down. Combined with the investment milestone in point 1, the politicization of AI is shifting from Silicon Valley debates to district politics.

(Source: Tom's Hardware / Fox News / CNBC / Bloomberg)

Also Worth Knowing ↓

Canada and France Announce Deepened Strategic Cooperation Covering Space, Defense, Energy, and Trade. Canadian Prime Minister Carney is systematically seeking economic and security partners outside the U.S., following a trade war that has hindered Canadian exports to the U.S. Macron is also looking for alternatives to energy supplies disrupted by the Iran war. Two allies squeezed by war and tariffs are filling each other's gaps.

Iran's economy faces a dual blockade: maritime routes blocked by U.S. military and land routes paralyzed by red checkpoints. Before the war, over 80% of Iran's trade went through southern ports, which are now blocked by U.S. military. Truck fleets turning to land routes are flooding into border crossings with Turkey, Pakistan, and Iraq, but inspections and congestion render alternative routes ineffective.

Zoom CEO Yuan Zheng predicts that AI will bring about a three-day workweek. He joins Gates, Jensen Huang, and JPMorgan CEO Dimon in this view. Anthropic CEO Amodei predicts a large disappearance of white-collar jobs. The judgments of tech leaders on the impact of AI on the workforce are diverging into two camps: those advocating for shorter work hours and those predicting job losses.

Ant Group has launched a full-stack financial AI product covering payments, accounts, foreign exchange, treasury, and growth operations. This is the first time a Chinese fintech company has restructured its global business technology stack with an AI-native architecture.

The Prime Minister of Qatar called for the establishment of a Gulf security framework at the United Nations. He described the impact of the U.S.-Israel war on Iran as an "earthquake," stating that the Gulf region cannot continue without a security mechanism ensuring that all parties do not threaten each other. Qatar is simultaneously mediating negotiations between Iran and the U.S.

Trump is set to meet with Zelensky during the UN General Assembly. As clashes between Russian and Ukrainian forces escalate, the White House is trying to facilitate reciprocal de-escalation measures and restore negotiations.

(Source: Fortune / Al Jazeera)