AI Infrastructure Investment Hits 2.8% of US GDP, Surpassing Railroad Boom

sanjaykalra · x · 2026-08-12

Columbia Business School's Stijn Van Nieuwerburgh points out that current AI infrastructure investment accounts for roughly 2.8% of US GDP, exceeding the historical railroad boom. He argues this sudden, massive stimulus has single-handedly prevented the US macroeconomy from entering a recession.

However, this unprecedented capex brings both optimism and caution. If AI's return on investment (RoI) falls short of expectations or is significantly delayed, it could trigger a severe market backlash, potentially leading the industry to abandon AI's core value prematurely.

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