"The numbers show that AI spending contributed 1.05% of total economic growth in the first half of 2025, after contributing only between .02% and .03% from 2022 through 2024 - a 4X to 5X growth ratio. The bad news (for the overall economy) is that consumer spending has fallen dramatically, from contributing 2.6% of GDP growth to just 1.05% in mid-2025. The decline could stem from flagging consumer confidence as the Trump tariffs take hold, and inflation fatigue and economic uncertainty continues."
"This has all been good news for AI companies and their suppliers. Michael Cembalest, who is Chairman of Market and Investment strategy at J.P.Morgan, writes in a recent brief that since the appearance of ChatGPT in November 2022, AI-related stocks have accounted for 75% of S&P 500 returns, 80% of earnings growth, and 90% of capital spending. OpenAI is now valued at"
AI infrastructure investment contributed 1.05 percentage points to U.S. GDP growth in the first half of 2025, a sharp rise from about 0.02–0.03 percentage points during 2022–2024. Consumer spending’s contribution to GDP growth fell from 2.6% to 1.05% by mid‑2025, likely reflecting weaker consumer confidence, tariffs, inflation fatigue, and economic uncertainty. AI spending covers business investment in software and information processing equipment, including data center construction, chip purchases, and computing infrastructure. AI-related equities and suppliers have benefited markedly, with a large share of recent S&P 500 returns, earnings growth, and corporate capital spending tied to AI developments.
Read at Fast Company
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