"In quarterly earnings, estimates from Alphabet, Amazon, Meta and Microsoft put combined capital expenditures at more than $130 billion for the quarter, driven by buildouts of data centers and other infrastructure."
"The scale of today's AI systems, which require far more hardware, energy, and coordination than earlier generations of software, means that more is almost never enough."
"McKinsey research from last year found that by 2030, AI capex is projected to require $6.7 trillion worldwide to keep pace with the demand for compute power."
Big Tech companies, including Alphabet, Amazon, Meta, and Microsoft, are projected to spend over $700 billion on AI infrastructure this year. This marks a significant increase from $410 billion last year. While Alphabet anticipates further increases, all companies indicate sustained high investment levels due to growing demand for AI capabilities. Market reactions vary, with Meta's shares falling and Alphabet's rising. The demand for computing power is unprecedented, with projections suggesting that AI capital expenditures could reach $6.7 trillion globally by 2030.
Read at Fortune
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