Corporate AI investment reaches 4.91% of GDP, surpassing 2000 dotcom levels, but rising expenses trigger pushback from firms.
US corporate spending on AI and information processing hit a record 4.91% of GDP in Q1 2026, exceeding the 4.46% peak of the 2000 dotcom bubble. AI-related outlays contributed 1.34 percentage points to annualized GDP growth of 2% during the period.
The surge has led to unexpected costs, with companies like Microsoft canceling internal AI tool licenses and Uber depleting its 2026 AI budget in four months. Analysts cite “tokenmaxxing,” where employees inflate usage bills, as a key driver of soaring expenses.
Firms are now reassessing AI adoption strategies amid concerns over unchecked spending and diminishing returns.