The AI gold rush: Investments surge, but gains in GDP are only guesstimates

Huge investments are being committed to AI-related infrastructure, but the technology's positive effects on labour market and GDP are only guesstimates

This week, Google committed $15 billion over the next five years to build a data centre in Visakhapatnam. This AI-focused hub will generate nearly 200,000 new jobs. It would have a non-trivial impact on India’s gross domestic product or GDP, which is roughly $4 trillion. Other global multinational corporations (MNCs), such as Amazon and Microsoft, and local giants like Airtel and Reliance, are also investing heavily in data centres. The aggregated data centre buildout therefore will be very significant.

 

Similar stories are playing out elsewhere. Jason Furman, a Harvard economics professor, estimates that AI-related investments