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Massive corporate investment in artificial intelligence infrastructure is reportedly cushioning the US economy against trade war impacts while driving nearly all recent GDP growth. However, economists caution this spending surge may conceal underlying economic vulnerabilities and raise sustainability concerns as AI capital expenditures account for an unprecedented share of expansion.

AI Spending Offsets Tariff Impacts

Corporate investment in artificial intelligence infrastructure is reportedly blunting the economic impact of the ongoing China–United States trade war while driving an overwhelming majority of recent GDP growth, according to economic analyses. Torsten Sløk, chief economist at Apollo Global Management, suggests in recent commentary that while trade tensions remain a “mild drag on growth,” their impact is being “more than offset by the tailwinds from the AI boom.”