Citigroup Raises AI Capex to $8.9 Trillion and Forecasts $3.3 Trillion Revenue
Citigroup boosted its 2026-2030 global AI capital expenditure forecast to $8.9 trillion from $8.0 trillion, projecting hyperscalers—including Alphabet—will invest over $630 billion in AI infrastructure this year. It also raised its global AI revenue outlook to $3.3 trillion from $2.8 trillion, citing rapid enterprise-driven adoption.
1. Citigroup's Revised AI Capex and Revenue Forecasts
Citigroup raised its global AI capital expenditure forecast for 2026-2030 to $8.9 trillion from $8.0 trillion and lifted the corresponding AI revenue projection to $3.3 trillion from $2.8 trillion. The update reflects accelerated enterprise demand, wider deployment of agentic systems and workflows, and forecasts hyperscalers—including Alphabet—to spend over $630 billion on AI infrastructure this year.
2. Implications for Alphabet
The increased capex outlook underscores Alphabet’s need to expand data-center capacity and invest in AI tools to capture enterprise-driven productivity gains. With hyperscaler stocks underperforming recently, this revision may prompt investors to reassess Alphabet’s long-term growth prospects in cloud and AI services.