Citigroup: Big tech to invest $2.8tn in AI by 2029
Big tech is going all-in on AI. Citigroup just bumped up its forecast: companies like Microsoft, Amazon, and Alphabet are now expected to pour $2.8 trillion into AI infrastructure by 2029 (up from $2.3 trillion).
The surge comes as more businesses jump on the AI bandwagon after ChatGPT's breakout in 2022.
Tech giants' AI push will need a lot more energy
With demand for smarter tech skyrocketing, these tech giants are racing to expand their AI muscle.
Citigroup says hyperscaler spending will hit $490 billion by 2026 (that's $70 billion higher than they thought before).
But all this computing power isn't free—it could need an extra 55 gigawatts of energy worldwide by 2030.
Companies are taking on debt to fund AI projects
Building out this much AI doesn't come cheap—about $50 billion per gigawatt—which means some companies are borrowing heavily and feeling the squeeze on cash flow.
Still, it's not just hype: firms like Eli Lilly and Hitachi have already taken AI from test runs to real business use, proving it's more than just a buzzword.