> The entire U.S. economy is being propped up by DATA CENTERS and AI pipe dreams.

Business investment in AI might have accounted for as much as half of the growth in gross domestic product, adjusted for inflation, in the first six months of the year. Rising AI stocks are also boosting household wealth, leading to more consumer spending, especially in recent months.

“It’s certainly plausible that the economy would already be in a recession” without the AI boom, said Peter Berezin, chief global strategist at BCA Research.

That makes the economy more dependent on AI. “It’s the only source of investment right now,” said Stephen Juneau, an economist at Bank of America.

Bank of America estimates that just four companies—Microsoft, Amazon.com, Alphabet and Meta Platforms—will make $344 billion in capital expenditures this year (equivalent to roughly 1.1% of GDP), up from $228 billion last year.

An already weakened economy raises the odds of a downturn if stocks and AI spending crash, said BCA’s Berezin. “If you take a fragile labor market and you kick it with a capex bust, you’re probably going to get a recession out of it.”

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