New York Fed President John Williams said AI equipment supply could take more than two years to catch up with demand, assuming demand continues as expected. According to NS3.AI, Williams said the AI infrastructure buildout is raising chip prices and the prices of goods that use chips, which could add to inflationary pressure.

Williams also reaffirmed that the Federal Reserve may need to raise interest rates once more this year to lower inflation. He said AI investment is likely to remain strong even with higher interest rates, while an AI equipment shortage could affect Bitcoin miners expanding into AI as they compete for chips and power equipment.