Stories
AI Buildout Poses Systemic Risks to US Economy, Researcher Warns
C
CNBC TV18•24-09-2026, 16:04
AI Buildout Poses Systemic Risks to US Economy, Researcher Warns
- •The AI buildout is projected to consume 3.6% of US GDP annually through 2032, exceeding previous major infrastructure rollouts like railroads and the internet.
- •Financing for this expansion has shifted from company cash reserves to complex external arrangements, raising concerns about leverage and untested revenue streams.
- •Columbia Business School professor Stijn Van Nieuwerburgh highlights the intricate financial structures involving AI firms, tech giants, banks, and private lenders.
- •The scale of investment, estimated at 183 gigawatts of new data center capacity, could lead to bubbles and busts similar to past technology expansions.
- •Van Nieuwerburgh warns that the opacity of special purpose vehicles in AI financing is reminiscent of the subprime mortgage crisis, creating significant downside risk despite potential for growth.
Key Questions Answered
The artificial intelligence buildout is on track to consume around 3.6% of gross domestic product annually through 2032, amounting to more than $10 trillion.
The projected AI expansion cost of roughly 3.6% of annual GDP exceeds the 2.2% absorbed by railroads in the late 1800s, as well as the roughly 1% annually spent on the US interstate highway system and telecommunications expansion.
Researchers warn that the opacity of special purpose vehicles and complex financial arrangements in the AI sector is reminiscent of the subprime mortgage crisis, which triggered the 2007-2009 US recession.
