• AI boosted US economy by ‘basically zero’ in 2025, says Goldman Sachs chief economist - ‘We think there’s been a lot of misreporting of the impact that AI investment had on GDP growth’ US companies are spending big, but most of that money goes overseas. • Get Tom’s Hardware’s best news and in-depth reviews, straight to your inbox. • You are now subscribed Your newsletter sign-up was successful It’s become a common narrative around the U.S. • economy and AI firms: AI investment is propping up America. • While there is an argument to be made that the stock market is, with the “Magnificent 7” tech firms making up a sizeable portion of the U.S. • stock market’s gains over the past year, that idea doesn’t hold water with general economic growth.
Article Summaries:
- Goldman Sachs chief economist Jan Hatzius has warned that U.S. AI investment has had a negligible effect on the economy, describing its contribution to 2025 GDP growth as “basically zero.” He argues that much of the hundreds of billions spent on AI infrastructure is directed overseas-particularly to manufacturing and chip production in Taiwan-so the domestic economic benefit is limited. Hatzius estimates that AI accounts for only about 0.2 % of the U.S. 2.2 % growth rate that year. The report also notes that major AI firms, such as OpenAI and Nvidia, remain heavily capital‑intensive and not yet profitable.
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