A recent forecast from Citigroup highlights the massive financial momentum behind artificial intelligence. According to the report, major technology firms — including global cloud and semiconductor leaders — are expected to collectively invest more than $2.8 trillion in AI infrastructure by 2029, up from the previous estimate of $2.3 trillion.
This surge in spending reflects the accelerating race to build and deploy AI models at scale, as companies seek to gain competitive advantage through automation, generative AI, and advanced analytics. However, analysts caution that such aggressive investment may also lead to structural challenges in power demand, data center capacity, and workforce readiness.
In essence, the global AI landscape is entering a “capital-intensive” phase — where the ability to fund and operationalize large-scale AI infrastructure could determine which firms dominate the next decade of technological innovation.
Source: Adapted from Reuters, Citigroup forecasts Big Tech’s AI spending to cross $2.8 trillion by 2029 (2025)