Five Tech Giants' AI Spending Projected to Hit 3.2% of US GDP in 2027, Surpassing Defense Budget

According to The Kobeissi Letter, by 2027, Alphabet, Amazon, Meta, Microsoft, and Oracle's combined AI capital spending is projected to reach 3.2% of US GDP, marking the first year this exceeds estimated defense spending of 2.7%.

The five companies' AI capex is forecast to hit approximately $800 billion in 2026, representing 2.5% of GDP, up sharply from 1.5% in 2025. By 2027, spending is expected to surge further to a record $1.1 trillion.