Goldman Sachs expects Big Tech to spend $1.2 trillion on AI infrastructure by 2027, dwarfing Wall Street estimates
Goldman Sachs forecasts that major tech companies will spend $1.2 trillion on AI infrastructure in 2027, representing over 50% growth from current levels. The projected investment dwarfs previous Wall Street estimates and would constitute the largest capital cycle relative to GDP since 19th-century railroad construction, though power, labor, and chip constraints may create bottlenecks.
Why it matters: This massive spending signals how central AI has become to tech strategy and could reshape markets for energy, real estate, and semiconductors for years to come.
SourceThe Decoder
