AI Boom Disproportionately Carrying U.S. Economic Growth

According to CNBC, global AI investments are projected to reach $375 billion in 2025 and $500 billion in 2026. U.S. economic activity is being driven by these investments – a Deutsche Bank study recently found that AI-related investments protected the U.S. from a recession. However, some are concerned that the economy is becoming overly reliant on AI growth and have noticed that some AI companies may not have enough revenue to match their spending. Despite the debt-intensive nature of these investments, investors are not nervous that these AI firms are too-big-to-fail, given their balance sheet cash and annual cash flow generation. 

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