[AI Capital Expenditure Expected to Reach $1.1 Trillion by 2027, Surpassing U.S. Defense Spending for the First Time] BlockBeats News, July 5: The Kobeissi Letter published an article stating that the AI spending boom is reshaping the U.S. economy. The AI capital expenditure of Alphabet, Amazon, Meta, Microsoft, and Oracle is projected to rise to approximately 3.2% of U.S. GDP by 2027. If this forecast materializes, annual AI capital expenditure will surpass U.S. defense spending for the first time, the latter of which is expected to account for about 2.7% of GDP next year. For this year alone, the AI capital expenditure of the aforementioned companies is expected to increase from 1.5% of GDP in 2025 to approximately 2.5%, nearing the 2.7% share of defense spending. The AI capital expenditure of these five companies is projected to exceed $800 billion by 2026 and further rise to a record-breaking $1.1 trillion by 2027. These figures are described as 'staggering.' [Original Link]