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Big Tech’s A.I. Spending Keeps Rising. So Do the Jitters.
The New York Times • • business
Key Points:
- Major tech companies including Amazon, Meta, Microsoft, and Google have significantly increased their capital expenditures on artificial intelligence infrastructure, with Amazon spending $53 billion in Q2 alone, a 69% rise from last year.
- These firms are projected to collectively invest around $1.5 trillion over the next two years to build data centers and equip them with advanced AI chips, reflecting an unprecedented scale of spending.
- Despite the aggressive investments, there are growing concerns on Wall Street about the profitability and timing of these expenditures, as evidenced by mixed stock market reactions.
- Amazon and Microsoft saw their shares rise following positive growth signals, while Meta and Google experienced stock declines due to rising costs outpacing revenue and Google's announcement of negative free cash flow for the first time since its IPO.
