Jamie Dimon Says Hyperscaler AI Spending Could Reach $1 Trillion Next Year

Summary

JPMorgan Chase CEO Jamie Dimon said spending across the hyperscaler AI ecosystem could reach $1 trillion next year, up from about $700 billion this year and roughly $300 billion last year. He said the investment surge is supporting economic growth and could add about 1% to GDP each year, while also contributing to inflation as companies hire workers, build factories and power plants, and purchase equipment and materials. Dimon said AI could eventually have a deflationary effect through efficiency gains, but cautioned that it is too early to identify the winners of the boom, comparing the uncertainty with the internet bubble. He added that returns will not always be easy to calculate because some AI spending is “table stakes,” including improvements to customer experience. Dimon also said heavy demand for capital from infrastructure, remilitarization and government deficits may push interest rates higher, and that a market correction was possible, although he was unsure AI would cause it. He remained concerned that inflation might persist or rise, and urged the Federal Reserve to maintain its 2% target. Ahead of a Trump-Xi summit, he said the U.S. and China should fully engage on trade, AI and security.