A Bloomberg report forecasts that AI-related capital spending by hyperscalers will total $3.5 trillion over the next five years (more than triple the 2023-25 total), with nearly $539 billion from major players like Meta, Oracle, Google, Amazon, CoreWeave, and Microsoft.

Open AI's supply agreements with AMD, Nvidia and Broadcom under the “Stargate” global program are projected to amount to $500 billion. This would bring Open AI's total planned spending through the end of the decade to more than $1 trillion. Open AI is thus expected to become the single largest source of AI related CAPEX and to drive the creation of nearly 42 GW of data centre capacity.

Total Annual AI Capex Breakdown - CY24 ~$240 Billion (Total CSP Capex with small Sovereign + Non-CSP) vs CY30 ~$1 Trillion (60-80% CSP, 20-40% Sovereign + Non-CSP), >4x Increase

Total Annual AI Capex Breakdown - Source: Bloomberg Intelligence

#Bloomberg, #OpenAI, #Hyperscalers

Author: Strategyland Research Team

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