AI capital expenditures are projected to reach $1.1 trillion in 2027, potentially exceeding U.S. defense spending for the first time.
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AI capital spending by the five major tech giants is surging and is projected to reach 3.2% of US GDP in 2027, surpassing defense spending for the first time.
According to forecasts released by The Kobeissi Letter, the investment boom in AI is reshaping the US economy. It is projected that by 2027, the capital expenditures of the five major tech giants—Alphabet (Google's parent company), Amazon, Meta, Microsoft, and Oracle—on AI will climb to approximately 3.2% of US GDP. If this forecast materializes, it will be the first time in US history that annual AI capital expenditures have exceeded national defense spending (estimated at approximately 2.7% of GDP next year). Data shows that this year (2026), these five companies' AI capital expenditures are expected to exceed $800 billion, with the percentage of GDP rising sharply from 1.5% in 2025 to around 2.5%, approaching the estimated 2.7% of defense spending. By 2027, this figure is projected to surge further, reaching a record $1.1 trillion.
Goldman Sachs: AI investment focus shifts to real-world industries; capital expenditure could reach $7.6 trillion over the next 6 years.
According to a recent report by Goldman Sachs, the focus of artificial intelligence (AI) investment has begun to extend to the broader real economy. While computing power, electricity, and data centers are still under rapid construction, AI is simultaneously entering real-world scenarios such as manufacturing, energy, logistics, defense, life sciences, and robotics. From 2026 to 2031, global AI capital expenditure surrounding computing, data centers, and electricity will reach approximately $7.6 trillion, with annual investment rising from $765 billion in 2026 to $1.64 trillion in 2031. Hyperscale cloud vendors may invest over $6 trillion in AI by 2030. The key to future competition will not only be models or chips, but also capital structure, energy supply, industry data, engineering capabilities, and deployment capabilities. (Cailian Press)
SK Hynix: Plans to use net proceeds from its US ADR offering for 45.5 trillion won in construction capital expenditures.
SK Hynix reportedly stated that it plans to use the net proceeds from its US ADR offering for 45.5 trillion won in constructive capital expenditures, specifically for the purchase of extreme ultraviolet (EUV) lithography machines. (Jiemian)
Momenta, dubbed the "first stock in physics AI," has completed its IPO, with its market capitalization once exceeding HK$70 billion.
Odaily Odaily reports that Momenta, dubbed the "first stock in physical AI," has completed its IPO on the Hong Kong Stock Exchange. The offering price was HK$295.6 per share, and the public offering was oversubscribed by 414 times. The stock opened slightly higher, with its market capitalization briefly exceeding HK$70 billion. Assuming the "greenshoe option" (over-allotment option) is fully exercised, the global offering consisted of approximately 22.93 million shares, raising approximately HK$6.8 billion. According to ZhenFund, Momenta announced that its mass-produced business has surpassed 1 million units equipped with its technology.
A well-known trader stated that Strategy's OTC selling of cryptocurrencies has limited impact on spot prices, and Bitcoin could potentially reach as high as $65,600.
According to Mars Finance, on July 7th, renowned trader Killa (@KillaXBT) stated that if Bitcoin holds above last week's closing price (approximately $59,000), it could potentially reach $65,600. Furthermore, regarding the "historic sell-off of 3,588 BTC by Strategy," Killa clarified that Strategy did not sell through the open market but rather through institutional trading to avoid significantly impacting Bitcoin's price. This partly explains Bitcoin's initial drop followed by a rise last night. Killa, a quantitative trader specializing in BTC, predicted the peak of this bull market in May 2025 and has over 200,000 followers on the X platform. In mid-April, he short Bitcoin at $74,688 and then went long during the market downturn on June 5th.
The US debt of $39 trillion has raised long-term concerns, with analysts saying the risk of an unsustainable fiscal path is rising.
According to Mars Finance, as of July 5th, the US national debt had risen to approximately $39 trillion, equivalent to the total US GDP, with annual interest payments reaching about $1 trillion, exceeding the defense budget. The US national debt system can be traced back to the debt consolidation reforms promoted by Alexander Hamilton in 1790, when the federal government assumed the wartime debts of the states and promised full repayment, thus establishing the US credit system and laying the foundation for the global status of the dollar and US Treasury bonds. Today, US Treasury bonds are considered one of the core assets of the global financial system, supporting the US dollar's reserve currency status and being widely held by central banks and financial institutions worldwide. However, as the debt continues to expand, market concerns about long-term sustainability are intensifying. According to the Wharton Budget Model (PWBM) at the University of Pennsylvania, when the debt-to-GDP ratio exceeds approximately 210%, the fiscal system may face unsustainable risks. Currently, this ratio in the US is about 100%, and the Congressional Budget Office projects it could rise to 175% by 2056. Analysts believe that with rising healthcare spending and a continuously expanding fiscal deficit, this risk threshold may arrive earlier than expected, and the long-term stability of the debt structure is facing more stringent market and policy tests.