AI capital spending has reached 1.2% of GDP since early 2020, placing it second only to the 1990s tech cycle, which peaked at 1.5% of GDP. The spending surge dwarfs earlier booms like the 2010s shale rush and the 1970s oil boom. Global data center costs may hit $1 trillion this year and climb to $2.1 trillion by 2028, with data center spending adding 0.20 percentage points to GDP growth in 2025 and an expected 0.40 points in 2026.
Wall Street has consistently underestimated actual capital expenditure growth, which topped 50% in both 2024 and 2025. Data centers now account for nearly 46% of private office construction, up from just 5% a decade ago, and the sector supports roughly 304,000 American manufacturing jobs. Stefan Hofer of LGT Private Bank argues the current capex boom is not aggressive relative to GDP and expects continued strength despite violent market swings.
On the corporate side, Customers Bancorp (CUBI) reported Q3 2026 revenue of $240.2 million, beating estimates by 1.5%. AI-driven automation cut loan underwriting cycle times by 95% and boosted productivity. CEO Samvir S. Sidhu highlighted record deposits and loan balances, while CFO Mark R. McCollom targets a low-forties efficiency ratio by next year.
BILL Holdings (BILL) launched a pilot in October 2026 with Visa and Billtrust that lets AI agents complete supplier invoice payments using tokenized credentials. The company aims to reduce manual finance work and centralize automation in payment workflows. Analysts forecast revenue of US$2.1 billion and earnings of US$404.7 million by 2029, though slow customer adoption remains a risk.
Privacy and cybersecurity concerns are reshaping software investment. Meta faces roughly $42 billion in penalties and settlements over privacy and safety failures, driving demand for risk-reduction tools. Commvault Systems offers cyber resiliency tools with about $1.22 billion in revenue, Intapp provides AI-powered compliance software with $578 million in revenue, and Telos focuses on government cyber and identity security with $184 million in security solutions revenue.
Banks are also boosting cybersecurity budgets. Everforth provides IT consulting and cybersecurity services with about $2.8 billion in commercial work and $1.2 billion in federal contracts. WidePoint, with $158 million in revenue, may compete for a $3 billion DHS contract, and Akamai Technologies offers security and cloud services with about $4.3 billion in revenue.
OpenText (OTEX) positions itself as a practical business AI play rather than a chatbot builder like ChatGPT. Its fiscal 2026 cloud revenue grew 5.5% to US$2 billion, and it runs on infrastructure from Microsoft, Amazon Web Services, and Google. The company pays a quarterly dividend of US$0.28 per share, offering income while the AI opportunity develops.
In other developments, Korean AI semiconductor companies including Puriosa AI, DeepEx, Revelion, and Hybrab are delaying public listings. Puriosa raised over KRW mid-800 billion in pre-IPO funding at a corporate value of about 3 trillion won, but companies are waiting to list until they show clear profits as the KOSDAQ index has fallen nearly 20% this year. The Agency is building a proprietary AI-native platform for its 4,000+ agents worldwide, combining MLS data, transactions, and marketing into one conversational interface, with a rollout starting with leadership and expanding globally in 2027. OpenAI released data showing work-related ChatGPT use across nearly 100 countries, with the top ten activities dropping from 56.0% to 51.1% of classified work messages between Q1 2025 and Q3 2026. A new method called DIVA lets large language models judge whether information is worth its cost, showing lower regret than baseline methods across 20 LLMs.
Key Takeaways
- AI capital spending has reached 1.2% of GDP since early 2020, trailing only the 1990s tech cycle at 1.5% of GDP.
- Global data center costs may hit $1 trillion this year and reach $2.1 trillion by 2028.
- Wall Street has consistently underestimated AI capex growth, which topped 50% in both 2024 and 2025.
- Customers Bancorp (CUBI) used AI-driven automation to cut loan underwriting cycle times by 95% and beat Q3 2026 estimates by 1.5%.
- BILL Holdings launched a pilot with Visa and Billtrust letting AI agents complete supplier invoice payments using tokenized credentials in October 2026.
- Meta faces roughly $42 billion in penalties and settlements over privacy and safety failures, boosting demand for cybersecurity tools.
- OpenText (OTEX) pays a quarterly dividend of US$0.28 per share while running on infrastructure from Microsoft, Amazon Web Services, and Google.
- Korean AI semiconductor firms including Puriosa AI are delaying public listings as the KOSDAQ index has fallen nearly 20% this year.
- The Agency is building a proprietary AI-native platform for its 4,000+ agents, with global rollout planned for 2027.
- OpenAI's new data shows work-related ChatGPT use across nearly 100 countries became less concentrated, with the top ten activities dropping from 56.0% to 51.1% between Q1 2025 and Q3 2026.
AI investment boom trails only 1990s tech cycle
AI capital spending has risen to 1.2% of GDP since early 2020, surpassing past booms like the 1970s oil rush. Only the 1990s tech cycle reached higher levels at 1.5% of GDP. Data center spending added 0.20 percentage points to GDP growth in 2025 and is expected to add 0.40 points in 2026. Global data center costs may hit $1 trillion this year and reach $2.1 trillion by 2028.
AI investment boom trails 1990s tech cycle data
AI-related spending has grown faster than the 2010s shale boom and 1970s oil boom. Data centers now make up nearly 46% of private office construction, up from 5% a decade ago. This growth supports about 304,000 American manufacturing jobs. Wall Street has consistently underestimated actual capex growth, which topped 50% in 2024 and 2025.
LGT Private Bank says AI capex boom is not aggressive
Stefan Hofer from LGT Private Bank remains bullish on AI despite possible credit stress among weaker players. He believes the current capex boom is not aggressive compared to GDP. He does not expect a prolonged downturn despite violent market swings. He also discussed sectors he likes beyond big tech.
3 software stocks for rising AI privacy and cybersecurity spending
Meta faces roughly $42 billion in penalties and settlements over privacy and safety failures. This has increased demand for companies that help reduce similar risks. Commvault Systems offers cyber resiliency tools and earns about $1.22 billion in revenue. Intapp provides AI-powered workflow and compliance software with $578 million in revenue. Telos focuses on cyber and identity security for governments and earned $184 million from security solutions.
3 cybersecurity stocks banks may use if AI security rules tighten
Cybersecurity risk at banks has returned to political focus, which could increase spending on digital defenses. Everforth provides IT consulting and cybersecurity services with about $2.8 billion in commercial work and $1.2 billion in federal contracts. WidePoint offers technology management with $158 million in revenue and may compete for a $3 billion DHS contract. Akamai Technologies provides security and cloud services with about $4.3 billion in revenue.
CUBI bank beats Q3 expectations with AI efficiency gains
Customers Bancorp (CUBI) reported Q3 2026 revenue of $240.2 million, beating analyst estimates by 1.5%. The company's adjusted EPS of $2.27 was 6.5% above expectations. AI-driven automation cut loan underwriting cycle times by 95% and boosted productivity. CEO Samvir S. Sidhu highlighted record deposits and loan balances, while CFO Mark R. McCollom targets a low-forties efficiency ratio by next year.
BILL Holdings tests AI-powered payment system with Visa
BILL Holdings (BILL) launched a pilot in October 2026 with Visa and Billtrust allowing AI agents to complete supplier invoice payments using tokenized credentials. The company aims to reduce manual finance work and centralize control of automation in payment workflows. Analysts forecast revenue of US$2.1 billion and earnings of US$404.7 million by 2029. The main risk is that slow customer activity could limit revenue growth and adoption.
Korean AI firms delay stock listings amid market concerns
Several Korean AI semiconductor companies including Puriosa AI, DeepEx, Revelion, and Hybrab are postponing public listings. Puriosa AI raised over KRW mid-800 billion in pre-IPO funding at a corporate value of about 3 trillion won. DeepEx plans a 350 billion won pre-IPO financing next month. Companies are waiting to list until they show clear profits, as the KOSDAQ index has fallen nearly 20% this year and recent IPOs like ELRIS dropped over 32% on their first day.
The Agency builds proprietary AI platform for real estate agents
The Agency is developing a custom AI-native platform for its 4,000+ agents worldwide. The system combines MLS data, transactions, financials, and marketing into one conversational interface using both privately hosted open-source models and commercial models. Sensitive data stays on infrastructure The Agency controls, preserving data ownership. The rollout begins with leadership first, then expanding to agents globally in 2027.
OpenText offers dividend-paying investment in business AI
OpenText (OTEX) is positioning itself as a practical way to invest in business AI rather than building chatbots like ChatGPT. Its fiscal 2026 cloud revenue grew 5.5% to US$2 billion, providing a base for AI strategy. The company runs on infrastructure from Microsoft, Amazon Web Services, and Google, giving customers deployment flexibility. OpenText also pays a quarterly dividend of US$0.28 per share, offering income while the AI opportunity develops.
DIVA helps LLMs ask for only useful information
Large language models often pay for information that does not change their decisions. DIVA is a new method that lets LLMs judge whether a piece of evidence is worth its cost. It uses a small decision model and stops asking when no check helps. Tests across 20 LLMs showed lower regret than baseline methods.
Guide to AI degree programs in Utah colleges
Utah universities now offer many AI degrees and certificates in fields like engineering, business, data science and healthcare. Programs are available at schools including BYU, Neumont University, University of Utah and Utah State University. Costs and lengths vary widely, from a four-week AI Essentials Certification for $120 to multi-year bachelor's and master's degrees. Some programs are online while others are on campus in cities like Salt Lake City, Provo and Logan.
OpenAI releases data on how people use ChatGPT for work
OpenAI released data showing how people in nearly 100 countries use ChatGPT for work. The data covers 165 work activity categories from the first quarter of 2025 through the third quarter of 2026. Researchers can use it to compare AI use across countries and over time. The data shows work-related use became less concentrated in the most common activities, with the top ten activities dropping from 56.0% to 51.1% of classified work messages.
Sources
- AI investment boom now trails the 1990s tech cycle
- AI investment boom now trails the 1990s tech cycle
- AI capex boom is not aggressive, relative to GDP: LGT Private Bank
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- Your guide to AI degrees and certificates in Utah
- ChatGPT’s expanding world of work
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