AI development spending set to hit $1.2 trillion, sparking universal basic income debate

Global AI development costs are rising faster than analysts expected. Goldman Sachs projects that the largest technology firms will spend $765 billion on AI this year, climbing to nearly $1.2 trillion next year. Companies such as Amazon, Meta Platforms and Alphabet have already reported negative free‑cash flow, while chip makers including TSMC, Samsung and SK Hynix have seen market‑value losses of over $100 billion each amid a memory‑chip shortage.

Economist Nuriel Rubini warns that the AI surge could displace a large share of the workforce within the next two decades, prompting calls for a universal basic income. He cites U.S. Social Security projections that the fund could be exhausted by 2032‑34 and notes that the British investment minister has begun internal discussions on basic‑income schemes to mitigate AI‑driven job loss.