Tech giants double down on their massive AI spending
Tech giants projected tens of billions of dollars in increased investment this year and sent a stark message about their plans for AI: We’re just getting started. “We think virtually every application that we know of today is going to be reinvented with AI inside of it," Amazon Chief Executive Andy Jassy said on Thursday’s earnings call. Here is a breakdown of each company’s plans: Amazon said a measure of its capex that includes leased equipment rose to a record of about $26 billion in the final quarter of 2024, driven by spending in its cloud-computing division on equipment for data centers that host AI applications. Still, parent-company Alphabet said it is accelerating investments in AI data centers as part of a surge in capital expenditures this year to about $75 billion, from $52.5 billion in 2024. Microsoft has said it plans to spend $80 billion on AI data centers in the fiscal year ending in June, and that spending would grow further next year, albeit at a slower pace.
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