$400 Billion AI Expenditure by end of 2025

According to The Wall Street Journal and other analysts, the capital expenditure of the four largest AI hyperscalers is set to reach $400 billion by the end of 2025—more than the entire EU defense budget in 2024. The bulk of this outlay is going into AI infrastructure: advanced data centers, chips, and global networks.

Some commentators have compared this wave of investment to the construction of the railways in the 19th century, which reshaped trade, economies, and daily life. Will AI have the same transformative impact? One thing is clear: no company commits capital on this scale based on a ‘gut feeling.’

Stay tuned as we will dive deeper into where this money is flowing, who is driving it, and what it means for the future.