ASTOUNDING AI

In 25Q1, Amazon, Alphabet, Meta and Microsoft collectively spent $88 billion on equipment and property (data centers, semiconductors), primarily in pursuit of their AI goals. Their spending is rising rapidly. During 24Q1 it slightly exceeded $50 billion. Annualized 25Q1 spending is over 1% of GDP, a stunning amount, more than spending as a percentage of GDP during the dotcom boom, and it’s responsible for half of 25H1 GDP growth!