Tech companies are heavily investing in artificial intelligence, with substantial spending reported in recent earnings announcements. Google increased its AI investment forecasts, prompting positive investor responses and rising stock prices. Major firms like Meta, Microsoft, and Amazon collectively spent $155 billion in the last quarter. Microsoft's valuation surged to over $4 trillion, while Meta's capitalization increased significantly. AI investments are playing a crucial role in economic growth, surpassing traditional consumer spending benchmarks. Projected expenditures for the next fiscal year indicate further substantial investments from these tech giants, including $100 billion from Microsoft alone.
This week, tech companies are spending amounts of money that stretch the limits of the imagination, with significant investments in AI leading the charge.
In total, three tech giants reported spending $155bn in the last quarter, which surpasses the US government's spending on education, training, employment, and social services.
Microsoft aims to invest around $100bn in AI, while Meta is looking at spending between $66bn and $72bn, reflecting the industry's bullish outlook on AI.
Analyzing these vast amounts showcases AI’s pivotal role in the economy, contributing more to growth than consumer spending over the past two quarters.
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