AI's never-before-seen capital grab

AI infrastructure investment is projected to reach $10.3 trillion through 2032, equal to 3.6% of GDP annually, dwarfing past booms in railroads and highways. New research presented at Brookings Papers on Economic Activity says financing will require massive bond, bank, and private credit borrowing, potentially pressuring borrowing costs elsewhere as the US government also finances its $2 trillion annual deficit.