Deutsche Bank analysts raised concern on the crucial role of AI investments in the latest better-than-expected U.S. GDP data underscoring its significance in maintaining the country’s economic stability.

AI Spending Anchors US Economic Growth

The U.S. economy has been significantly bolstered by investments in AI-related sectors, according to a recent note from Deutsche Bank. The bank’s analysts, Adrian Cox and Stefan Abrudan, emphasized the pivotal role of tech-related spending in sustaining the country’s economic growth, reported Fortune.

The analysts said investment in AI-related sectors is critical to GDP growth, adding that the U.S. would be “close to recession” this year if not for tech-related spending, as other spending has flatlined post-Covid.

Deutsche Bank’s note also highlighted the substantial AI-related spending by hyperscalers, projecting a cumulative expenditure of $4 trillion on AI data centers through 2030. This amount surpasses the inflation-adjusted cost of the U.S. government’s moon-landing program in the 1960s ...