The AI spending boom is redefining the US economy: AI CapEx across Alphabet, GOOGL, Amazon, AMZN, Meta, META, Microsoft, MSFT, and Oracle, ORCL, is projected to rise to ~3.2% of US GDP in 2027. If that materializes, annual CapEx will surpass national defense spending for the first time in history, which is projected at ~2.7% of GDP next year. For this year alone, AI CapEx is set to increase to ~2.5% of GDP, from 1.5% in 2025, close to the estimated defense spending of ~2.7%. This comes as AI CapEx of these 5 companies is projected to surpass $800 billion in 2026. Subsequently, in 2027, this is expected to rise further, to a record $1.1 trillion. Truly mind-blowing numbers.(The Kobeissi Letter)