Legendary Investor Grantham Says U.S. Economy Would Have Collapsed by 2023 Without AI Spending

According to Guru Club, on May 20, legendary investor Jeremy Grantham stated in a podcast that artificial intelligence spending prevented the U.S. economy and stock market from collapsing in 2023. Grantham, who has successfully predicted three market bubbles, said he originally expected a recession in 2023 with the S&P 500 declining an additional 25%. Amazon, Google, Meta, and Microsoft collectively allocated $725 billion in capital expenditure for 2026, primarily for AI infrastructure, representing approximately 2% of 2025 U.S. GDP and effectively supporting economic growth.
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