Financing of historic AI buildout raises systemic risks in US, researcher says

The expansion of artificial intelligence (AI) technology in the United States is projected to require a significant portion of the country's output, surpassing the impacts of past technological advancements like electricity, railroads, interstate highways, and the internet, according to a new study by Stijn Van Nieuwerburgh, a finance and real estate professor at Columbia Business School.

The AI buildout is expected to consume around 3.6% of the U.S. gross domestic product (GDP) annually through 2032, which equates to more than $10 trillion. This is compared to the 2.2% of annual GDP absorbed by railroads in the late 1800s and 1% annually for the construction of the interstate highway system beginning in the 1950s and the telecommunications expansion starting in the mid-1990s.