Goldman Sachs expects annualized spending on artificial intelligence (AI) hardware and intellectual property to reach $1.4 trillion by December 2027. This forecast reflects the rising investment as technology companies expand data centers and develop more advanced AI systems.
According to Reuters, in a report published on November 12, 2026, US spending on AI-related hardware and intellectual property could exceed $900 billion by December 2026. Goldman Sachs expects this figure to rise to $1.4 trillion by the end of 2027, accounting for nearly 4% of US GDP.
The investment bank also expects AI spending to remain the biggest driver of US business investment growth in 2027. However, concerns about higher borrowing costs, stricter regulations, and rising scrutiny could affect future spending plans.
AI Spending Could Boost US Economic Growth
Goldman Sachs believes rising demand for AI infrastructure will drive business investment across the United States. Companies are increasing spending on semiconductors, data centers, computing equipment, and other technologies needed to build and run AI systems.
According to the bank, AI-related investments, including semiconductor spending, could contribute 5.3 percentage points to US capital expenditure growth in 2027. These investments could also increase US gross domestic product (GDP) growth by 0.6 percentage points.
However, the estimated economic impact is lower when semiconductor investments are excluded. Without this spending, AI-related investments would contribute 4.3 percentage points to capital expenditure growth and 0.2 percentage points to GDP growth.
Goldman Sachs also pointed out that conventional business investment data does not fully capture semiconductor spending. Additionally, some imported information-processing equipment is excluded from specific GDP calculations, which affects how AI investment contributes to measured economic growth.
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Goldman Sachs Forecasts 8% Growth in US Business Investment in 2027
Goldman Sachs expects US business investment to increase by 8% on a quarterly basis in 2027. This forecast is nearly double the market consensus estimate of 4.2%, highlighting the expected impact of rising artificial intelligence (AI) infrastructure spending on the US economy.
Major technology companies are continuing to invest in data centers, advanced semiconductors, and computing equipment to meet growing demand for AI services. These investments are expected to support business spending and drive further growth in the technology sector.
However, rising AI infrastructure costs are also creating concerns among investors. Several technology companies are relying on debt to fund their expansion plans, increasing their exposure to higher borrowing costs and changing market conditions.
Investors are also questioning whether companies can generate enough revenue from AI products and services to recover their growing infrastructure investments. This has raised concerns about the long-term returns from the billions of dollars being spent on AI development.
Regulatory Risks and Higher Borrowing Costs Could Slow AI Investments
Goldman Sachs’ latest forecast comes as concerns grow over the future of artificial intelligence (AI) infrastructure spending in the United States. Rising interest rates and closer investor scrutiny could increase the cost of financing new data centers, semiconductors, and computing equipment.
Political changes are also creating uncertainty for technology companies planning large AI infrastructure projects. Recent Democratic victories in the US midterm elections have raised concerns about stricter regulations on data center construction and expansion.
However, Goldman Sachs expects these political developments to have only a limited impact on AI investment growth. The bank believes strong demand for AI infrastructure will continue to support spending, despite higher borrowing costs and possible regulatory challenges.
ALSO READ: AI Infrastructure Spending Statistics
AI Infrastructure Spending Continues to Rise Worldwide
Goldman Sachs’ latest forecast highlights the growing investment needed to support the expanding artificial intelligence (AI) industry. Major technology companies are spending billions on AI chips, data centers, cloud computing, and networking equipment.
These investments are increasing as businesses adopt generative AI, large language models, and AI agents. Companies need more computing power and storage capacity to develop, train, and operate advanced AI systems.
Goldman Sachs has also pointed to the wider economic impact of rising AI infrastructure spending. In an August 2026 research report, the bank estimated that global AI investment could reach 1.3% of global GDP in 2027, up from 0.9% in 2026.
The latest $1.4 trillion forecast indicates that AI spending could remain a major source of US business investment through 2027. However, future growth will depend on whether companies can turn these investments into higher revenue and productivity gains.
