Siddharth Pai, co-founder at 3one4 Capital and co-Chair of Regulatory Affairs Committee at IVCA, said at the Business Today AI Summit 2025 that around 40 per cent of the US GDP growth last year was due to artificial intelligence and its related infrastructure.
“Intelligence may be artificial, but the returns really have to be real. That has been the guiding force. truly astounding to see a nascent industry become so large. 40% of the US GDP growth over the last year happened because of AI, AI-related infrastructure, etc. The AI cohort in terms of private credit in the US has actually overtaken the amount of credit taken by banks. This includes AI companies, tech companies, the manufacturers who are there, the energy companies and all,” Pai told Business Today TV’s Shail Bhatnagar.
He added that an astonishingly large amount of money is chasing AI assets because of uncertainty in the markets and a non-zero interest rate environment at present. The 3one4 Capital co-founder underlined that of late, people have realised that capital is a moat.
“People have realised that capital is actually a moat, and they realise especially when it comes to evidence-based analysis because of the brute force computation that they’ve employed. The larger number of GPUs you end up actually having, the stronger your training is becoming, the more value you can end up actually creating out of that.”
Even though Pai said that AI is a lucrative investment, he mentioned that true disruption remains far away. He said that the true disruptive factor is not that AI would not translate into action.
“The true disruption that is going to happen is that people are going to reduce the cost of compute. If you look at the gross margins of any of these companies are looking out, they are actually negative. It costs ChatGPT more money to end up actually running a single query than you can ever end up accumulating during a year subscription.”
AI boosted US GDP growth significantly via massive technology investments, increased productivity, and the rapid expansion of the AI industry.
As per a report by Bank of America Global Research, technology and AI-related investments comprised around 1.4 percentage points of US GDP growth in the first quarter of 2024 and 1.5 per cent points in the second quarter. The report, therefore, suggests that new investments into AI contributed around 1.2 to 1.3 percentage points to GDP growth in each quarter.
Moreover, the AI boom in the US drove revenue growth in major tech companies, including Microsoft, Nvidia, and Meta, as it enabled companies to automate processes and optimise operations.
