AI spending by Big Tech is off the charts and may be propping up the entire US economy.
The tech giants ramped their capex massively since ChatGPT dropped in November 2022. Microsoft, Google, Amazon, and Facebook pushed AI-related spending from $151 billion in 2023 to $246 billion last year, with forecasts over $320 billion this year.
The spending surge dwarfs the rest of the market. While the Mag 7’s capex soared 40% last year, the other 493 S&P 500 companies barely ticked up 4%. 
Sherwood News, The Wall Street Journal, and The Financial Times all spot the same trend: AI investment keeps climbing steeply across the board.
This isn’t just market hype. AI capex is now adding more to US GDP than consumer spending, which normally makes up about 70% of the economy.
Ren Mac shared this eye-popping chart underlining the scale:
Consumer spending in the US economy vs AI spending impact on GDP. AI spending surpasses consumer spending’s GDP contribution.
The big question: will this insane AI spend pay off or implode?
There are two clear scenarios:
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The companies wasted a fortune on AI with poor returns, tanking their market dominance.
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AI reshapes everything, and the spenders dominate for the long haul.
No one knows which will happen. The economy shows mixed signals: softening labor market, weak housing, tariffs lingering. But top tech keeps blowing through cash like a Las Vegas gambler at the ATM.
AI capex might prevent the next recession—or trigger a bigger crash if returns disappoint.
Either way, AI’s massive cash burn is shaping the macro landscape like never before. The world’s richest tech firms are betting the house on AI. The rest of us just wait to see if the bet pays off.
Further reading: Mega Cap World Domination
