The capital expenditure on AI by the five major tech giants has surged, expected to account for 3.2% of the US GDP by 2027, surpassing defense spending for the first time

According to the forecast data released by The Kobeissi Letter, the investment boom in the AI sector is reshaping the structure of the U.S. economy. It is expected that by 2027, the capital expenditure of the five major tech giants—Alphabet, Amazon, Meta, Microsoft, and Oracle—in the AI field will account for about 3.2% of the U.S. Gross Domestic Product (GDP).

If this forecast comes to fruition, it will mark the first time in U.S. history that annual AI capital expenditure exceeds national defense spending (which is expected to account for about 2.7% of GDP next year).

Data shows that this year (2026), the AI capital expenditure of these five companies is expected to exceed $800 billion, with its share of GDP sharply rising from 1.5% in 2025 to around 2.5%, nearing the estimated 2.7% for defense spending. By 2027, this figure is expected to soar further, reaching a record $1.1 trillion.