Citigroup: Tech giants to spend $2.8 trillion on AI
Citigroup now expects tech giants to spend over $2.8 trillion on AI infrastructure by 2029—way up from their earlier guess of $2.3 trillion.
This big jump comes as companies like Microsoft, Amazon, and Google keep pouring money into data centers to fuel the AI boom that really took off after ChatGPT hit the scene in 2022.
Upgrading for AI
To keep up with all the new AI workloads, these companies are planning to spend about $490 billion on AI-related upgrades by 2026 (that's already $70 billion more than Citigroup thought before).
Meeting global demand will mean building out huge amounts of power capacity too, which isn't cheap.
Real-world impact
With so much cash going into AI, even these tech giants are feeling the squeeze—some are borrowing just to keep up.
Still, Citigroup points out that real-world uses at places like Eli Lilly and Hitachi show how valuable this tech is becoming, making all that investment feel worth it for now.