JPMorgan Chase CEO Jamie Dimon said artificial intelligence investment across the hyperscaler ecosystem could reach $1 trillion next year, building on spending that has more than doubled from approximately $300 billion last year to around $700 billion this year.
Speaking to CNBC-TV18 on the sidelines of the 11th annual JPMorgan India Conference, Dimon described the spending surge as a meaningful driver of economic growth but one that carries inflationary risks. He estimated the cycle could add roughly 1 percentage point to annual GDP growth. "That's like 1% increase to GDP each year," Dimon said, adding that hiring, construction of factories and power plants, and equipment purchases may push prices higher.
On a longer time horizon, however, Dimon called AI an "unbelievable technology" that could ultimately prove deflationary. He predicted the expansion would continue, but cautioned that it was too early to identify which companies would win out, drawing a parallel to the dot-com era when many established names failed while unknown firms became dominant.
Asked about return expectations, Dimon acknowledged that some AI investments would not yield straightforward financial calculations. "Sometimes it's just table stakes," he said, citing improvements in customer experience as a benefit that is difficult to quantify. He added that companies were likely to become more efficient in deploying AI over time.
Beyond AI, Dimon flagged upward pressure on interest rates from heavy capital demand tied to infrastructure buildout, remilitarization and persistent government deficits. He suggested a market correction was possible but stopped short of identifying AI as the trigger.
On inflation, Dimon remained cautious, saying he hoped price pressures would ease but acknowledging they could hold steady or climb slightly. He reiterated that the Federal Reserve should maintain its 2% inflation target.
Ahead of the scheduled summit between U.S. President Donald Trump and Chinese President Xi Jinping, Dimon said the two sides appeared to be making progress and should fully engage on trade, AI and security issues. He called the talks important for the broader free world.
On India-U.S. relations, Dimon urged both countries to complete a stalled trade agreement. "It obviously hasn't moved forward," he said. "I hope it's not put in the back burner." He also urged Washington to account for India's refining needs regarding Russian oil purchases, cautioning against measures that could punish Indian markets and disrupt global crude supplies.
Dimon projected India's economy could grow to three times its current size over the next decade, adding that JPMorgan would continue expanding its presence in the country.
