Global AI capex nears $700 billion as investor appetite for tech IPOs stays strong: Citi
Global AI infrastructure spending is projected to surge to nearly $700 billion by hyperscalers, up from $400 billion earlier this year, according to Citi’s Aloke Gupte, who also highlighted strong investor interest in upcoming mega-IPOs like SpaceX and Anthropic. Despite liquidity concerns, Gupte noted robust capital reserves and long-term growth potential in markets like India, where AI infrastructure and upcoming IPOs could drive foreign investor participation.
Global spending on AI infrastructure is accelerating, with projected capital expenditures by the world’s largest hyperscalers rising from $400 billion earlier this year to nearly $700 billion, according to Aloke Gupte, Global Co-Head of Equity Capital Markets at Citi. Investors worldwide remain focused on the AI ecosystem, fueling strong demand for technology-related capital raising and high-profile IPOs, including upcoming listings for SpaceX and Anthropic, which Gupte described as ‘must-own’ companies due to their global importance. The AI investment cycle is expanding across the entire technology sector, encompassing hyperscalers, semiconductor firms, memory makers, infrastructure providers, and cloud businesses. Markets are seeing heavy activity in equity, debt, and mezzanine funding as companies prepare for the next phase of AI growth, with investors positioning themselves for major IPOs well in advance. While concerns exist about large global IPOs absorbing liquidity from emerging markets, Gupte believes investor appetite remains strong due to substantial capital still waiting on the sidelines. He emphasized that many global investors have already prepared for these transactions, ensuring sustained demand. On India, Gupte acknowledged that 2026 has seen relatively weak equity performance compared to markets like the US, Hong Kong, and Taiwan. However, he urged a long-term perspective, noting India’s consistent positive returns since 2020, a nearly $5 trillion market capitalization, and over 114 companies valued above $10 billion. The country’s broad-based equity market is supported by strong domestic liquidity from retail investors and systematic investment flows. Gupte highlighted India’s potential to contribute to the global AI ecosystem through infrastructure, hardware, and digital capabilities as the technology evolves. He also pointed to Asia’s strong equity capital market cycle, driven by activity in China, Korea, and Japan alongside the global AI investment boom. Several large Indian companies are expected to go public in the next 12–18 months, potentially attracting significant foreign investor participation despite recent outflows.
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