US GDP rose 2% in the first three months of 2026, new data showed Thursday, driven by AI investment.

The expansion fell short of Wall Street’s expectations as consumers pulled back slightly on spending — a key inflation gauge rose to its highest point in nearly three years in March.

The first-quarter GDP data doesn’t capture the effects of rising gas prices in April because of the Iran war, which is set to further weigh on Americans.

But the AI boom could offset any drag.

Private business investments contributed more to GDP growth than consumer spending, a trend that could continue as US hyperscalers pledge to ramp up their AI expenditures.