Reid Hoffman credits AI data-center spending with averting a US recession

Reid Hoffman, co-founder of LinkedIn, told listeners of the Newcomer podcast that the influx of capital into AI data-center construction is the only reason the United States has avoided a recession. He explained that the funding is not confined to tech hubs but is distributed nationwide, supporting a range of occupations from construction trades to legal services. Hoffman cited a recent Pew Research Center poll indicating that half of rural respondents now view data centers as largely harmful to the environment, up from 32% earlier in the year.

He stressed that AI companies such as OpenAI, Anthropic, Meta and Google need these centers to power their products, and that developers should work cooperatively with local communities. While September’s jobs numbers were disappointing, unemployment stays low and GDP grew at a 2.2% annual rate in Q2, suggesting the economy remains on stable footing.