Society changes fast. Last Tuesday, Citigroup told everyone the number for how much money Big Tech is spending on AI is huge—$2.8 trillion by 2029. Many people looked shocked, but it’s true. The last number was $2.3 trillion. This time, even Amazon, Microsoft, and Google all state that more resources are being allocated to large computers and AI-related technologies. Why? Everyone wants to use it, and businesses respond, “Yes, we want it now.”
Huge Investments, Not Just Profits
The old way was waiting for profits. Not now. Tech giants borrow large sums of money due to the high costs associated with new AI machines. Citigroup states that it will cost $50 billion for each gigawatt of capacity. There’s no way profits alone can pay. Companies like Google, Microsoft, and Amazon do not. They take on debt to build more data centers.
ChatGPT Sparked the Rush
Many say this started in 2022 when ChatGPT came out. Suddenly everyone wanted AI. Demand exploded. Data centers filled up so fast. Microsoft, Amazon, and Alphabet raced to fix this—and spent billions. Even now, China’s DeepSeek tries to compete, making it cheaper and harder for American companies to relax. US tariffs don’t help, either. Still, the money keeps flowing in. Citigroup says by the end of 2026, hyperscalers (those big data center companies) will spend $490 billion, and that’s more than they said earlier.
Power Needed Is Giant Size
Computers for AI use more electricity than older tech. Citigroup counts and says the world needs fifty-five gigawatts more power for just AI. That means $2.8 trillion spent. Half goes to the US. Data centers cry for power—no power, no AI.
Businesses Can’t Wait
No surprise, then, that companies like Eli Lilly, Hitachi, and Wolters Kluwer use real AI. Production-ready AI is everywhere. Hospitals, banks, even factories. Citigroup says demand is enterprise-driven now, not hype. It’s showing up inside company reports already. Third-quarter numbers will mention it; guidance will talk about more AI spending, even when not showing profits yet. The point is, companies aren’t just talking—they’re buying.
Investors Start Asking Hard Questions
Some investors feel worried. If tech groups spend more every year, does it chew up cash flow? Citigroup found spending is eating into what’s left over after costs. Model changes. Investors want to know, does it stop growth, or will borrowing keep up? At the next earnings call, this topic will come up.
The Global Stage—China, US, Everywhere
Not only America, but also China fights back with low-cost approaches. DeepSeek’s cheaper models shake markets. Yet, American tech, from Silicon Valley, pushes forward, even paying more for capacity and innovation. Tariffs sit like a cloud, but not enough to slow key moves.
Real Stories: Engineers In Demand
All this means more jobs for engineers. Data science, design, power management, cybersecurity, user interface—every part needs people. CNBC and Reuters say hiring is up, and training too. Not just in the US, but also in India, Europe, and Asia. Engineers from all walks get called. The tools may change, but every company needs talent right now.
The Road Ahead
If Citigroup is right, the next four years will break records for AI spending. Companies will push for smarter, faster, and more energy-hungry AI setups. All eyes are on Microsoft, Amazon, and Google when they report earnings. Pay attention this quarter—real numbers show up soon.
(Source: investing, globalbankingandfinance, reuters)
