Global AI spending is set to hit $2 trillion next year – here’s where all the money is going

Global AI investment is projected to hit $2 trillion by next, according to research from Gartner, as big tech spending continues to skyrocket.

Analysis from the consultancy shows a key factor behind this spending spree lies in AI infrastructure expansion, with big tech ramping up development to accommodate surging enterprise demand.

"The forecast assumes continued investment in AI infrastructure expansion, as major hyperscalers continue to increase investments in data centers with AI-optimized hardware and GPUs to scale their services,” said John-David Lovelock, distinguished VP analyst at Gartner.

Lovelock added that investment is “expanding beyond traditional US tech giants,” with Chinese tech companies also ramping up investment.

“Furthermore, venture capital investment in AI providers is providing additional tailwinds for AI spending,” he said.

Looking ahead, Gartner said it projects global AI spending to surpass $2 trillion by 2026. Infrastructure spending is a key factor in this increase, but the consultancy noted that integration of AI within products such as smartphones and PCs will also contribute to the overall surge.

Where big tech is spending money

According to Gartner, the bulk of AI investment this year will be focused primarily on AI services, with spending reaching a total of $282.5 billion.

Investment in AI-optimized servers, which includes GPUs and non-GPU AI accelerators will top $267 billion. This marks a significant increase compared to 2024, in which the consultancy recorded just $140 billion in spending.

Spending on this front is also projected to surge by next year, with Gartner projecting $329.5 billion in spending.

Notably, spending on AI smartphones is expected to account for the largest pool of investment across both 2025 and 2026, reaching $393 billion by next year and marking a huge increase compared to $244.7 billion in spending across 2024.

Laying the groundwork for the AI boom

The findings from Gartner come amidst a period of rapid investment by big tech in the crucial infrastructure that underpins AI.

Since the advent of the generative AI race in late 2022, repeated concerns have been raised over the ability for data centers to keep pace with adoption rates.

Analysis from JLL in late 2023 found the surge in generative AI development was placing a significant strain on colocation data center capacity, with many providers struggling to keep pace.

Previous research from Gartner on infrastructure demands showed data center capacity was expected to double by 2028.

To meet expected demand, big tech firms have taken matters into their own hands. In the US, for example, the $500 billion Stargate Project led by Oracle, OpenAI, and SoftBank, aims to build out AI infrastructure across the country to meet expected demand in the coming years.

Investment is also booming across the Atlantic. Just this week, a host of major US tech firms pledged billions in investment to accelerate infrastructure development in the UK.

Google unveiled plans for £5 billion in spending to expand data center infrastructure while Nvidia announced £11 billion in spending to host Europe’s largest GPU cluster in the country.

This investment, which coincided with US president Donald Trump’s state visit to the UK, also included a landmark £22 billion investment pledge from Microsoft - again aimed at accelerating infrastructure development.

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