AI in gdp

• Quality-adjusted AI production in the United States grew at over 2,000 percent per year in 2024 and 2025, driven by three compounding forces: expanding data-center capacity, hardware efficiency gains, and—the largest of the three—algorithmic progress.
• Treating the AI sector as a coherent economic entity yields preliminary estimates of nominal AI GDP at approximately $250 billion in 2025, growing at roughly 2,600 percent per year in quality-adjusted real terms.
• National economic statistics accounts were not designed to track this kind of activity. Statistics agencies should begin developing AI-focused satellite accounts now, before the measurement gap becomes a policy gap.

Here is much more from Anton Korinek and Patrick McKelvey. Via the excellent Samir Varma.