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AI spending is booming across various sectors, from massive data center investments by leading tech companies to smaller-scale contracts and subscription services. For instance, the “magnificent 7” — Meta, Microsoft, Google, Amazon, Apple, Tesla, and NVIDIA — collectively spent over $100 billion on AI infrastructure in just three months.
This massive AI spending is now having a noticeable impact on the US economy. The “magnificent 7” collectively spent $100 billion in AI infrastructure in just one quarter.
Moreover, these companies have no plans to slow down their investments. For example, Meta projected full-year AI CapEx of $69 billion for 2025 and hinted at a potential spending run-rate exceeding $100 billion in 2026. This is exemplified by Mark Zuckerberg’s announcement of a gigawatt AI cluster called Prometheus, which will include up to half a million NVIDIA GB200/GB300 AI GPUs.
Other leading companies have also announced significant AI CapEx plans. Microsoft is set to spend $30 billion in the September-ending quarter and over $100 billion next fiscal year. Amazon plans to spend $100 billion in 2025, while Google/Alphabet aims for a spending run-rate of $85 billion.
The $500 billion AI mega-project Stargate has involved companies like OpenAI, SoftBank, and Oracle. OpenAI recently signed a mammoth deal with Oracle to develop a 4.5GW data center at a cost of $30 billion per year starting in three years. OpenAI also expanded its deal with CoreWeave for an additional $4 billion on top of the existing $11.9 billion.
OpenAI has concluded $100 billion worth of data center deals this year, aligning with Stargate’s investment target for 2025.
AI CapEx and the US Economy
The construction of around 250 data centers in the US indicates a significant impact on the US GDP. According to Paul Kedrosky, with NVIDIA’s annualized data center revenue figure of $156 billion and a 50% share for AI CapEx, the total 2025 AI CapEx could reach $312 billion. A 2x multiplier suggests a $624 billion positive impact on GDP, or approximately 2.08% of the US GDP.
This level of spending is comparable to the railroads’ peak contribution of around 20% of the US GDP in the 19th century, indicating substantial room for growth before reaching parity with that era’s infrastructure boom.
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According to the passage, how much did the 'magnificent 7' collectively spend on AI infrastructure in just one quarter?
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