"The current AI boom is not sustainable, a Deutsche Bank research note warned this morning, because tech spending won’t “remain parabolic.” AI capex is now so massive it is keeping the U.S. out of recession, the bank said. Separately, Bain & Co. estimate there will be an $800 billion shortfall in the revenues needed to fund the demand for AI computing power. About half the S&P 500’s gains this year have been driven by tech stocks.
On the heels of Nvidia’s $100 billion investment in OpenAI, two research notes out today suggest the current boom in AI may be unsustainable.
“AI machines—in quite a literal sense—appear to be saving the U.S. economy right now,” George Saravelos of Deutsche Bank wrote to clients. “In the absence of tech-related spending, the U.S. would be close to, or in, recession this year.”
Separately, Bain & Co.’s annual global technology report says that AI won’t be able to generate enough revenue to sustain the computing power it needs to build. “Two trillion dollars in annual revenue is what’s needed to fund computing power needed to meet anticipated AI demand by 2030. However, even with AI-related savings, the world is still $800 billion short to keep pace with demand,” the report says."
https://fortune.com/2025/09/23/ai-boom-unsustainable-tech-spending-parabolic-deutsche-bank/
