Deutsche Bank analysts raised concern on the crucial role of AI investments in the latest better-than-expected U.S. GDP data underscoring its significance in maintaining the country’s economic stability.
AI Spending Anchors US Economic Growth
The U.S. economy has been significantly bolstered by investments in AI-related sectors, according to a recent note from Deutsche Bank. The bank’s analysts, Adrian Cox and Stefan Abrudan, emphasized the pivotal role of tech-related spending in sustaining the country’s economic growth, reported Fortune.
The analysts said investment in AI-related sectors is critical to GDP growth, adding that the U.S. would be “close to recession” this year if not for tech-related spending, as other spending has flatlined post-Covid.
Deutsche Bank’s note also highlighted the substantial AI-related spending by hyperscalers, projecting a cumulative expenditure of $4 trillion on AI data centers through 2030. This amount surpasses the inflation-adjusted cost of the U.S. government’s moon-landing program in the 1960s by 10 times “with no guaranteed return.”
The analysis comes on the heels of U.S. GDP expanding at an annualized 4.3% rate in the third quarter of 2025, as per the initial estimate released by the Bureau of Economic Analysis. This growth has been attributed to various factors, including AI investments.
Analyst Sees AI Buildout As Durable, Not Bubble
Bank’s analyst echo economist Mohamed El-Erian who said that the strong economic growth has been accompanied by elevated inflation, with resilient consumer spending now reinforced by an AI-driven surge in capital investment.
Contrary to fears of a debt-fueled bubble, Goldman Sachs Asset Management has emphasized that the majority of the AI sector’s massive infrastructure buildout is funded by robust corporate cash flows, not risky borrowing. This has contributed to the sector’s structural soundness.
Similarly, Daniel Newman, CEO of Futurum, said the AI market is not a bubble but a multi-decade technology supercycle. While he noted that AI hype and overspending by some companies can create the appearance of a bubble, he stressed that core infrastructure leaders like Nvidia Corp (NASDAQ:NVDA), Google (NASDAQ:GOOG) (NASDAQ:GOOGL), and Microsoft Inc. (NASDAQ:MSFT) are generating real revenues and do not fit that narrative.
Meanwhile, billionaire and Microsoft co-founder Bill Gates acknowledged the existence of AI bubble but clarified that it isn’t equal to the 17-th century Tulip Mania and resembled the early days of the internet.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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