Jamie Dimon says hyperscaler AI spending could hit $1 trillion next year

The artificial intelligence spending boom is showing little sign of slowing, with investment across the hyperscaler ecosystem potentially reaching $1 trillion next year, according to JPMorgan Chase CEO Jamie Dimon .

Spending across the hyperscaler ecosystem has more than doubled from about $300 billion last year to around $700 billion this year, a surge Dimon said is boosting economic growth while potentially adding to inflation.

"That's like 1% increase to GDP each year," Dimon told CNBC-TV18 on the sidelines of the 11th annual JPMorgan India Conference, adding that the spending "may add a little bit to inflation" as companies hire workers, build factories and power plants, and buy equipment and materials.

Over the longer term, however, Dimon said AI could have a deflationary effect, calling it an "unbelievable technology" whose rapid expansion "looks like it's going to continue."

Still, he said it was too early to pick winners from the AI boom, pointing to the internet bubble, where many familiar names failed while previously little-known companies emerged as major winners, as an example of how the AI industry could evolve.

Asked about returns on AI spending, Dimon said investments would not always come down to a straightforward calculation of returns, saying that "sometimes it's just table stakes."

He pointed to improvements in customer experience as one benefit that can be difficult to quantify, and said companies could become more efficient in how they deploy AI over time.

Beyond AI, Dimon said heavy demand for capital from infrastructure, remilitarization and ongoing government deficits may be pushing interest rates higher. He also said there "may be a market correction" but that he was not sure AI would be the cause.