The broadband industry invested $94.7 billion into communications infrastructure in the US in 2023.

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– USTelecom

The data comes from a study conducted by USTelecom, and represents the second-highest annual investment in 22 years.

According to the study, broadband providers have invested around $2.2 trillion in broadband infrastructure since 1996.

2022 saw slightly greater investment than 2023, at $102.4 billion.

The investment spans expanding fiber deployments, integrating fiber and mobile networks, and bringing more connectivity to rural areas.

Among the motivations for significant investment, USTelecom includes advances in artificial intelligence increasing the demand for bandwidth.

The report notes that the growing investment is noteworthy as it occurs "at the same time broadband prices continue to lag overall inflation."

According to the data, the previous spike in investment occurred between 2000 and 2001, correlating with the dot-com bubble which ballooned during the late 90s, peaked in 2000, and fell significantly by October 2002.

Artificial intelligence is similarly experiencing a 'boom' in popularity, with companies such as Nvidia seeing significant growth. Earlier this year, a research newsletter from Goldman Sachs warned that large tech companies have ramped up capital expenditure to fuel generative AI development, but have yet to show sustainable business models.

Goldman Sachs' head of global equity research, Jim Covello, noted: "Many people attempt to compare AI today to the early days of the Internet. But even in its infancy, the Internet was a low-cost technology solution that enabled e-commerce to replace costly incumbent solutions."

The paper goes on to speculate that unless ROT improves, investor enthusiasm may begin to fade.