Elon Musk predicts AI could double U.S. gdp growth to 4% next year

Elon Musk, CEO of Tesla, claimed on September 19 that AI could double U.S. GDP growth next year, pushing it from 2% to 4%, possibly higher. This prediction contrasts with mainstream economic forecasts. Morningstar expects U.S. growth to slow in 2027, while Apollo Global Management estimates AI capital spending could reach 3% of GDP from 2027 to 2029. Moody’s forecasts tech firms will spend nearly $1 trillion on chips and data centers in 2027, equivalent to about 6.72 trillion yuan at current exchange rates. Analysts note that converting AI investments into productivity gains often takes time, as seen during the 1990s internet boom. The Federal Reserve raised rates to 4.00% in September, with Goldman Sachs predicting another increase in October. Despite higher rates, large tech firms are expected to continue investing in AI infrastructure, though smaller businesses may face challenges in securing funding for AI projects.