Global AI Spending to Near $2T as GenAI Products Surge

- Generative AI-enabled smartphones and AI services drive growth - MENA region and Saudi Arabia emerge as key global AI investors According to Gartner's latest forecast, global spending on artificial intelligence will reach $1.5 trillion in 2025. On September 22, 2025, Cryptopolitan reported that this spending is expected to exceed $2 trillion by 2026. This surge is primarily fueled by advancements in AI-enabled devices, services, and infrastructure, with leading contributions from hyperscalers, U.S. and Chinese tech firms, and evolving markets like the Middle East and North Africa (MENA). On September 22, reports from Cryptopolitan, CIO Dive, and ZDNET indicated that the largest spending categories in 2025 will be generative AI-powered smartphones ($298.2 billion), AI services ($282.6 billion), and AI-optimized servers ($267.5 billion). Projections show that by 2026, spending on GenAI-enabled smartphones will rise to $393.3 billion, while AI services will expand to $324.7 billion. In addition, investors are pouring significant funds into data centers optimized with AI-specific GPUs, driving transformation across industries. AI investment is intensifying in the MENA region, where forecasters project overall IT spending to climb to $169 billion in 2026, an 8.9% increase from 2025. Within MENA, spending on data center systems will grow by an impressive 37.3%, underlining a strategic emphasis on AI-driven infrastructure. Saudi Arabia is emerging as a standout player with bold initiatives aligned with its Vision 2030 framework. According to research from IDC and Gartner, the nation’s AI spending is estimated to soar from $1.44 billion in 2025 to $6.4 billion by 2030. Moreover, AI is projected to contribute an estimated $135.2 billion to the Kingdom’s GDP by 2030, accounting for 12.4% of its total economic output. Saudi Arabia’s aggressive AI expansion is propelled by several initiatives. One key venture is Humain, supported by the Public Investment Fund, which targets $23 billion in strategic collaborations and manages a $10 billion venture fund. Furthermore, the California-based AI firm Groq secured a $1.5 billion commitment for cutting-edge chip production, a deal that demonstrates Saudi Arabia’s ambition to become a global AI hub.