- Honey, AI Capex Keeps Eating . . . Everything
Summing it, a reasonable estimate is that AI capex contributed perhaps 1 3% of the 3% GDP growth in the quarter, around 40% If accurate, this would be an even larger share than that contributed to GDP by AI capex in the first quarter, which I wrote about here
- As a percentage of US GDP, AI datacenter capex is already . . .
As a percentage of US GDP, AI datacenter capex is already larger than peak telecom spending during the dot-com era and is approaching the railroad spending boom — AI capex is so big that it's affecting economic statistics, boosting the economy, and beginning to approach the railroad boom
- A quote from Paul Kedrosky
One analyst recently speculated (via Ed Conard) that, based on Nvidia's latest datacenter sales figures, AI capex may be ~2% of US GDP in 2025, given a standard multiplier
- Honey, AI Capex is Eating the Economy - paulkedrosky. com
One analyst recently speculated (via Ed Conard) that, based on Nvidia's latest datacenter sales figures, AI capex may be ~2% of US GDP in 2025, given a standard multiplier This would imply an AI contribution to GDP growth of 0 7% in 2025
- US Growth Rate Hits 3. 0% in Q2 Amid Weak Consumption – CEPR
US GDP growth rate: rose 3 0% in Q2 2025 as imports fell, but weak consumer spending and investment point to slower growth ahead
- Life Under Two: Debt, Deficits, and the AI Discontinuity
The U S economy is undergoing a fundamental shift from over 3% average annual growth to "life under two": at or below 2% annually This slowdown underlies rising populism, fiscal strain, anti-immigrant sentiment, and distrust in institutions
- Gross Domestic Product, 2nd Quarter 2025 - Bureau of Economic . . .
Real gross domestic product (GDP) increased at an annual rate of 3 0 percent in the second quarter of 2025 (April, May, and June), according to the advance estimate released by the U S Bureau of Economic Analysis
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