AI could double US growth, says Musk, amid funding cost concerns

Tesla and SpaceX CEO Elon Musk has said artificial intelligence could double US economic growth next year, raising GDP expansion from about 2% to 4%.

According to The Economic Times, Musk made the projection in a post on X, adding that growth could be even higher.

His comments come as the AI investment sector faces rising funding costs and questions over the ability of companies to generate sufficient returns from massive infrastructure spending.

Brokerage firm Dolat Capital said the investment cycle faces pressure from higher bond yields, tighter liquidity and challenges surrounding AI monetisation. It noted that the next phase of AI growth will depend on investment returns, demand and borrowing costs.