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Large technology corporations show no signs of slowing down their spending on synthetic intelligence, although the effects still seem very distant.
By Karen Weise
Karen Weise covers Seattle’s technology.
Mark Zuckerberg, CEO of Meta, 2023 by pointing to it as the “year of efficiency”. Like many of its biggest tech peers, Meta has cut jobs and put expansion plans on hold.
Then came AI.
Zuckerberg began this year by saying that his company would spend more than $30 billion in 2024 on next-generation infrastructure. In April, it increased that amount to $35 billion. On Wednesday, it raised it to at least $37 billion. And he said Meta would spend even more next year.
Zuckerberg said he would build too fast “too late” and allow his competition to take a big lead in AI. race.
The tech industry’s largest corporations made clear last week that they have no plans to restrict their spending levels on synthetic intelligence, even as investors worry that a big gain will come later than previously thought.
In the last quarter alone, Apple, Amazon, Meta, Microsoft and Alphabet, Google’s parent company, spent a total of $59 billion on capital expenditures, up 63% from a year earlier and 161% more than four years ago. It has been spent building knowledge centers and integrating them with new IT systems to expand synthetic intelligence. Only Apple has not particularly increased its spending because it does not build the most complex AI systems itself.
Capital spending in the last quarter increased to 63 from last year.
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