BlockBeats News, July 5th, The Kobeissi Letter stated that the AI spending frenzy is reshaping the U.S. economy. AI capital expenditures from Alphabet, Amazon, Meta, Microsoft, and Oracle are expected to rise to approximately 3.2% of the U.S. GDP by 2027.

If this forecast materializes, annual AI capital expenditures will surpass U.S. defense spending for the first time, with the latter expected to account for about 2.7% of the GDP next year. Just this year alone, the AI capital expenditures of these companies are projected to increase from 1.5% of GDP in 2025 to around 2.5%, approaching the approximate 2.7% share of defense spending.

The AI capital expenditures of these 5 companies are expected to exceed $800 billion in 2026 and further climb to a record-breaking $1.1 trillion in 2027. These numbers are "astonishing."