"Big Tech's AI gold rush isn't slowing down- it's getting more expensive. Amazon, Google, Meta, and Microsoft all opened their wallets wider than ever this quarter, logging record-breaking capital expenditures on AI chips, servers, and data centers. Microsoft was the top spender at nearly $35 billion, narrowly beating Amazon. Meta CEO Mark Zuckerberg said the company could increase itslong-term asset spending, or capital expenditure (capex), by as much as 24% next year. Each company said it planned to spend even more on capex going forward."
"Amazon this week opened an $11 billion data center in Indiana, part of its massive AI supercluster called Project Rainier, and said it would spend $5 billion on data centers in South Korea. Microsoft recently joined a consortium of investors to buy 50 data centers in the US and Latin America for $40 billion. Even Apple, a notoriously restrained spender compared to the other hyperscalers, told investors that it expects capex spending to increase in the next fiscal year."
"Investors are watching closely: companies showing early AI payoffs, like Google, are being rewarded, while others - like Meta - are running out of time to prove the spending spree is worth it. "After all the expensive hires and the capex ramp, Meta's grace period for showing investors something on the non-core AI side is nearly up," Bernstein senior analyst Mark Shmulik said Wednesday in a research note."
Amazon, Google, Meta, Microsoft, and Apple reported record capital expenditures focused on AI chips, servers, and data centers, with plans to raise capex further into 2026. Microsoft led spending at about $34.9 billion, with Amazon close behind and Meta considering up to a 24% increase in long-term asset spending. Recent deals include Amazon's $11 billion Indiana data center and $5 billion South Korea investment, and Microsoft joining a $40 billion consortium to buy 50 data centers. Investors reward companies showing early AI returns and worry some giants may be building costly foundations without near-term payoff.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]