US Software Investment Hits Record $797.6B in Q1 2026
US businesses invested an annualized $797.6 billion in software in Q1 2026, nearly double the level a decade ago, as AI deployment fuels infrastructure spending.
The annualized pace of $797.6 billion marks one of the highest levels on record and is roughly twice the rate seen ten years ago. The surge underscores how software is shifting from a discretionary expense to core infrastructure.
Accelerating AI adoption is a key driver. As companies move beyond simply building new models, the next phase of the AI boom is expected to revolve around deploying those models across industries, with trillions of dollars in investment anticipated.
This structural trend suggests software spending may remain robust even as other areas of business investment fluctuate.
Source: The Kobeissi Letter