Big Tech’s AI spending reshapes the US economy

Companies—Google, Meta, Amazon, and Microsoft—are spending over $350 billion this year to build AI data centers.

Their massive investment comes as the US job market slows, with fewer people getting hired in May and June, according to the Labor Department.

AI may boost growth
Experts say the AI boom could help the economy grow. One estimate shows it could add 0.7% to US GDP in 2025—half of the 1.4% total growth predicted by the Federal Reserve.

Microsoft recently hit a $4 trillion value, and Meta’s stock jumped 11%. Nvidia, which makes AI chips, earned $44 billion last quarter.

But there are risks
Areas like Texas and Northern Virginia are seeing more construction jobs due to data centers, but the projects won’t need many workers once completed.

Some worry the economy is relying too much on AI. Past tech projects promised big returns but failed.

Still, Big Tech keeps raising its spending plans. If AI profits fall, it could hurt the stock market and people’s investments.