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Without data centers, GDP growth was 0.1% in the first half of 2025, Harvard economist says (fortune.com)

submitted 1 month ago by technocrit@lemmy.dbzer0.com to c/fuck_ai@lemmy.world

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U.S. GDP growth in the first half of 2025 was almost entirely driven by investment in data centers and information processing technology, according to Harvard economist Jason Furman. Excluding these technology-related categories, Furman calculated in a Sept. 27 post on X.com GDP growth would have been just 0.1% on an annualized basis, a near standstill that underlines the increasingly pivotal role of high-tech infrastructure in shaping macroeconomic outcomes.

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[–] Taldan@lemmy.world 12 points 1 month ago

Even if AGI is just around the corner and we'll get all the AI advancements promised, this is still a bubble

It's a bubble because the vast majority of spending is being done on data centers, which are not really required. I can easily run a LLM on my local machine. Deepseek can run reasonably well on a modern smartphone

There is no way AI companies are going to recoup the trillions spent on data centers. People simply aren't willing to pay that much, and if we can get similar results from open source models running on our local devices, people will do that