The AI boom is unsustainable unless tech spending goes ‘parabolic,’ Deutsche Bank warns: ‘This is highly unlikely’

Photo: BEIJING, CHINA - MARCH 28: Humanoid robots at the humanoid robot innovation center at Shougang Park on March 28, 2025 in Beijing, China. A humanoid robot innovation center was established in Beijing to accelerate the technology supply and industrialization of humanoid robots. (Credit: Photo by Fu Ding/Beijing Youth Daily/VCG via Getty Images)

• The current AI boom is not sustainable, a Deutsche Bank research note warned this morning, because tech spending won’t “remain parabolic.” AI capex is now so massive it is keeping the U.S. out of recession, the bank said. Separately, Bain & Co. estimate there will be an $800 billion shortfall in the revenues needed to fund the demand for AI computing power. About half the S&P 500’s gains this year have been driven by tech stocks.

On the heels of Nvidia’s $100 billion investment in OpenAI, two research notes out today suggest the current boom in AI may be unsustainable.