Dimon Says Hyperscaler AI Spending Could Hit $1 Trillion Next Year

Dimon said the surge is boosting economic growth while potentially adding to inflation. "That's like 1% increase to GDP each year," he told CNBC-TV18 on the sidelines of the 11th annual JPMorgan India Conference. He added that the spending "may add a little bit to inflation" as companies hire workers, build factories and power plants, and buy equipment and materials.

Over the longer term, Dimon said AI could have a deflationary effect. He called it an "unbelievable technology" whose rapid expansion "looks like it's going to continue."

Dimon said it was too early to pick winners from the AI boom. He pointed to the internet bubble, where many familiar names failed while previously little-known companies emerged as major winners, as an example of how the AI industry could evolve.

Asked about returns on AI spending, Dimon said investments would not always come down to a straightforward calculation of returns. "Sometimes it's just table stakes," he said. He pointed to improvements in customer experience as a benefit that can be difficult to quantify, and said companies could become more efficient in how they deploy AI over time.

Beyond AI, Dimon said heavy demand for capital from infrastructure, remilitarization and ongoing government deficits may be pushing interest rates higher. He also said there "may be a market correction" but that he was not sure AI would be the cause.

He remained cautious on inflation, saying he hoped price pressure would ease but "there's a chance it won't, and it may even go up a little bit." He added that the Federal Reserve should stick to its 2% inflation target.

Ahead of the summit between U.S. President Donald Trump and Chinese President Xi Jinping, Dimon said the two sides appeared to be making progress and should "fully engage" on issues including trade, AI and security. He said he hoped the two countries would use the talks to address their differences, calling the discussions "important for the whole free world."

Turning to India-U.S. relations, Dimon said the two countries should return to the negotiating table and complete a trade agreement. "It obviously hasn't moved forward," he said. "I hope it's not put in the back burner." Dimon said he understood concerns in the U.S. about purchases of Russian oil, but said Washington should take into account India's refining needs and avoid "punishing India and the world oil markets."

More broadly, Dimon said India's economy could grow to three times its current size over the next decade, adding that JPMorgan would continue expanding in the country. "We're going to keep on building," he said.