JPMorgan Chase Chairman and Chief Executive Officer Jamie Dimon attends a ribbon-cutting ceremony to open the company’s new headquarters at 270 Park Avenue in New York City, USA, on October 21, 2025.
Eduardo Muñoz | Reuters
The spending boom in artificial intelligence shows little sign of slowing down, with investment across the hyperscaler ecosystem potentially reaching $1 trillion next year. JP Morgan Chase CEO Jamie Dimon.
Spending across the hyperscaler ecosystem has more than doubled from about $300 billion last year to about $700 billion this year, Dimon said, a surge that could fuel economic growth while also accelerating inflation.
“That’s like a 1% increase in GDP every year,” Dimon told CNBC-TV18 on the sidelines of the 11th JPMorgan India Annual Conference, adding that this spending “could drive inflation a little bit higher” as companies hire workers, build factories and power plants, and buy equipment and materials.
But in the long run, AI could have a deflationary effect, Dimon said, noting that AI is an “incredible technology” and its rapid expansion “looks like it’s here to stay.”
Still, he said it’s too early to pick winners from the AI boom, citing the Internet bubble, where many familiar companies failed while previously unknown companies emerged as big winners, as an example of how the AI industry will evolve.
Asked about the return on AI spending, Dimon said that investing doesn’t always come down to a simple return calculation, and that “sometimes it’s just a gamble.”
He cited improved customer experience as one of the benefits that is difficult to quantify, and said that companies can become more efficient with their AI deployments over time.
Dimon said that beyond AI, high capital demands from infrastructure, rearmament and ongoing government deficits could be pushing rates higher. He also said that “there may be a market correction,” but he doesn’t know if AI is to blame.
Inflation outlook
He also remains cautious on inflation, saying he hopes price pressures will ease, but “that may not happen, and it may even rise slightly,” adding that the Fed should stick to its 2% inflation target.
Speaking ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping, Dimon said the two countries appear to be making progress and should be “fully engaged” on issues such as trade, AI and security.
He called the talks “important for the entire free world” and said he hoped both countries would use them to address their differences.
Turning to India-US relations, Dimon said the two countries should return to the negotiating table and finalize a trade deal.
“Clearly we’re not making progress,” he said. “I hope it doesn’t get put on the back burner.”
Dimon said he understood U.S. concerns about buying Russian crude, but said the U.S. should consider India’s refining needs and avoid “punishing India and the global oil market.”
More broadly, India’s economy could grow three times its current size over the next decade, Dimon said, adding that JPMorgan would continue to expand in the country: “We’re going to continue to grow.”
