New Delhi:The concerns over the sustainability of artificial intelligence-related capital expenditure spending are beginning to reshape global capital flows, potentially benefiting India, a report said.

The report from SBI Funds said artificial intelligence capital expenditure is projected to average around 3.6 per cent of US GDP between 2025 and 2032, significantly exceeding the 1.1 per cent recorded during the dotcom cycle in 2000 and 2.2 per cent during the 19th-century railroad boom.

An unprecedented boom in AI capex has supported strong growth, especially in the US even as massive borrowings by hyperscalers and tech firms pressurise long term bond yields.

“If AI revenues come into doubt, sustaining capex at current financing costs could come under question. The effects would spread to related sectors, US equities, US growth and how money is allocated across asset classes,” the report said.