Citigroup has raised its forecast for AI infrastructure spending by tech companies to over $2.8 trillion through 2029, up from a previous estimate of $2.3 trillion, driven by projected hyperscaler expenditures of $490 billion by the end of 2026. This surge is attributed to the booming AI infrastructure sector, which is becoming a significant contributor to U.S. stock market gains. Companies like Nvidia and Oracle are responding by enhancing their capacity and exploring financing options to support their expansion in this rapidly growing market.
“hyperscalers · will spend · infrastructure and other capital goods · $490 billion”
“Citigroup analysts · previously estimated · hyperscalers spending · $420 billion”
“AI infrastructure boom · has been · a major force behind U.S. stock market gains · true”
“Nvidia · is expected to benefit from · higher spending · true”
“Oracle · sold · $18 billion of bonds · true”
“Oracle · has spent · more than it's made · true”
“Oracle · is expected to increase · cloud capacity · true”
“Citi · sees Oracle’s capital expenditures · ballooning to $58 billion · in fiscal year 2027”
“OpenAI · struck a deal with · Nvidia · to deploy 10 GW of systems”
“OpenAI · is reportedly discussing · leasing chips from Nvidia · true”
“the arrangement between OpenAI and Nvidia · could cut · hardware costs · by 10 to 15%”
“Ford CEO Jim Farley · expects · EV demand · to slide”
