Jefferies Warns AI Investment Slowdown Could Hit US Economic Growth
Jefferies economist Mohit Kumar estimates that US capital expenditure on AI infrastructure could reach 2.5%–3% of GDP over the next three years, representing an unprecedented scale of investment.
Concerns are growing over the sustainability of the AI investment boom, much of which is being financed through debt.
The US dollar and Treasury yields fell as investors assessed the risks associated with elevated AI spending.
Kumar warned that any slowdown in AI infrastructure development could significantly affect suppliers and weigh on broader US economic activity.
The outlook highlights the growing importance of AI-related capital expenditure to US growth and the potential economic risks if investment momentum weakens.
Jefferies economist Mohit Kumar estimates that US capital expenditure on AI infrastructure could reach 2.5%–3% of GDP over the next three years, representing an unprecedented scale of investment.
Concerns are growing over the sustainability of the AI investment boom, much of which is being financed through debt.
The US dollar and Treasury yields fell as investors assessed the risks associated with elevated AI spending.
Kumar warned that any slowdown in AI infrastructure development could significantly affect suppliers and weigh on broader US economic activity.
The outlook highlights the growing importance of AI-related capital expenditure to US growth and the potential economic risks if investment momentum weakens.