"Meta plans to spend up to $72 billion this year on AI infrastructure, and has said spending will climb higher next year. CEO Mark Zuckerberg said this year that he'd rather risk "misspending a couple of hundred billion dollars" than be late to the development of superintelligence. Amazon, Google, Microsoft, and privately held AI companies like OpenAI are logging record-breaking capital expenditures on all things AI."
"There are eyewatering sums of money at play, but Schultz said that, compared to historical bubbles, the current trend is not huge as a percentage of the sector's market capitalization or revenue. Compared to the US railroad bubble of the late 19th century, "it seems aggressive, but not crazy," said Schultz of the current AI boom."
"In an October research note, Goldman Sachs analysts estimated that AI-related investment in the US is under 1% of GDP, compared with the 2% to 5% of GDP reached during earlier technology booms, including the railroad expansion."
Meta plans to spend up to $72 billion this year on AI infrastructure, with spending expected to rise next year. Leadership prefers risking large misspending over being late to potential breakthroughs in AI. Major tech firms and private AI companies are investing heavily in chips, data centers, and talent. Goldman Sachs estimates AI investment in the US is under 1% of GDP, below past tech booms. Company analysis views current investment as aggressive but not an outsized bubble. Meta's AI work is producing billions in revenue and improving advertising and content ranking, and is prompting energy discussions.
Read at Business Insider
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