Source: Paul Krugman
by Paul Krugman
“The boom in AI-related spending is already enormous relative to the size of the U.S. economy and is widely expected to grow even bigger. Indeed, a widely cited projection by Stijn Van Nieuwerburgh of the Columbia Business School concludes, based on announced plans by major players in the industry, that this will be the biggest investment boom in U.S. history, measured as a percentage of GDP …. Well, I’m going to make a prediction: This will not happen. Instead, the splurge on AI will run into two walls that will force either postponement or cancellation of many of those announced projects.” (10/29/26)
https://paulkrugman.substack.com/p/will-the-ai-investment-splurge-last