Photo (modified) by UK Prime Minister, via Wikimedia CommonsIn a post a week ago, I shared some pretty startling numbers about the size of the AI-related capex boom:Source: Paul KedroskyIn fact, this boom is so big that in 2025 so far, AI-related investment has contributed more to economic growth than all the growth in consumer spending combined. Since consumption is more than three times as big as investment overall, this is a really startling fact — it means that consumption is sluggish, while AI capex is sustaining economic growth all by itself. Paul Kedrosky calls this a "private sector stimulus program", and he's not wrong.
Paul Kedrosky calls this a "private sector stimulus program", and he's not wrong. My last post asked whether a crash in the AI sector would hurt the U.