Big Tech plans $720B on AI data centers
Original title: Big Tech’s big AI buildout will not end until someone stops it
Amazon Microsoft Alphabet and Meta commit to over $1 trillion in AI infrastructure spending with no near-term returns expected.
Big Tech companies announced record capital expenditures on AI data centers following earnings calls. Amazon Microsoft Alphabet and Meta plan at least $720 billion this year plus over $1 trillion in future commitments. Despite growth in cloud revenues no AI returns have materialized yet and spending is expected to continue significantly into 2027. Google Cloud growth is impacting Search ad revenue.
- $720B combined CapEx on AI infrastructure
- Over $1T in future commitments
- No monetization yet for AI
- Google Cloud growth impacts Search
- 10x compute efficiency targeted by Meta
From the original article
6 min read at theverge.com
After four of the biggest competitors in the AI race held quarterly earnings calls late last month, two things are clear: Big Tech is not done spending record amounts on the AI data center buildout, and the AI data center buildout is not any closer to yielding its promised returns. A third thing is also starting to become clear - Big Tech will not be slowing down, at least not on its own.
By Ellen Thomas · theverge.com
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