New Delhi, Nov. 12 -- The surge in artificial intelligence investments has fueled strong economic growth in different parts of the world, particularly in the United States. However, the massive borrowing by hyperscalers and tech companies to fund their spending has also put upward pressure on long-term bond yields.

The scale of expenditure marks one of the largest capital spending cycles in history. Average annual AI capital expenditure (capex) is estimated at around 3.6% of US GDP during 2025-32, much higher than the 1.1% recorded during the 2000 dotcom cycle and 2.2% during the 19th-century railroad boom, NDTV Profit reported, citing a report by SBI Funds Management.

However, a key concern is whether the massive investments in AI will...