$1 Trillion AI Spending Boom Sparks Inflation Fears, Long-Term Deflation Hopes

JPMorgan Chase CEO Jamie Dimon believes that hyperscaler AI spending could hit $1 trillion next year, which would contribute around 1% to GDP growth.

Dimon warned that this build-out may add a little bit to inflation, but he thinks AI can also enhance productivity and lower inflation in the long term, acting as a deflationary force.

He noted that AI is 'unbelievable technology' whose rapid expansion 'looks like it's going to continue.'