According to BlockBeats, on July 5th, The Kobeissi Letter published an article stating that the AI spending boom is reshaping the US economy. AI capital expenditures by Alphabet, Amazon, Meta, Microsoft, and Oracle are projected to rise to approximately 3.2% of US GDP by 2027.
If this forecast comes true, annual capital expenditure on AI will surpass U.S. defense spending for the first time, which is projected to account for approximately 2.7% of GDP next year. This year alone, the aforementioned companies' AI capital expenditure is expected to rise from 1.5% of GDP in 2025 to approximately 2.5%, approaching the approximately 2.7% share of defense spending.
These five companies' AI capital expenditures are projected to exceed $800 billion in 2026 and rise further to a record $1.1 trillion in 2027. These figures are "staggering."