- Honey, AI Capex Keeps Eating . . . Everything
We have already seen how the Big Four tech companies' AI spending is pushing around GDP It should be unsurprising, given that they have spent more in the last two years, longer if you strike out Meta's metaverse misadventure, than in the prior seven years combined
- 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
- AI Investments Fuel 2025 US GDP Boom Amid Sustainability Risks
In 2025, surging AI infrastructure investments by tech giants like Microsoft and Meta are boosting U S GDP and productivity, echoing the 1880s railroad boom but with rapid asset depreciation While fueling growth, this "AI capex boom" raises sustainability risks and potential economic pullbacks if returns falter
- 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
- Q2 GDP Was Eaten By AI Capex | RealClearMarkets
Across companies, geographies, and even GDP, AI capex has become overwhelming Read Full Article »
- The economy grew in Q2. Whats that mean for Fed rate cuts?
The US economy grew 3% in the second quarter as a tariff-related import surge that shrank output early in 2025 reversed, artificially juicing growth
- AI and gravity-defying US GDP | Reuters
As the brave new world of generative AI enters its third year, the financial impact has expanded well beyond the share price of chipmakers, as data center construction and capex spending more
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