Skip to content

Big Tech’s AI Spending Spree Shows No Sign Of Slowing

Photo by BoliviaInteligente / Unsplash

The artificial intelligence boom shows no signs of slowing. Meta, Microsoft, and Google are ramping up capital spending to fuel their AI ambitions, signaling that the tech-led economic surge will continue.

Meta now expects to spend at least $70 billion on AI infrastructure this year, while Google parent Alphabet raised its outlook to $91 billion. Microsoft CEO Satya Nadella said rising demand justified greater investment “across both capital and talent,” according to Axios.

Federal Reserve Chair Jerome Powell dismissed fears of an AI bubble, saying data center investments are based on “longer-run productivity gains,” not cheap money. Analysts like Vanguard’s Joe Davis credit AI-related spending for propping up U.S. growth.

But the boom isn’t translating into broad job gains. Most data centers run with limited staff, and corporate layoffs are ticking up. Local opposition to massive data center projects is also rising, even as investment continues.

Also read:

Perplexity Unveils AI Patent Directory To Simplify Innovation Search
AI search startup Perplexity has launched Perplexity Patents, a new tool designed to simplify how users find and analyze global patent information. Today we’re launching Perplexity Patents, the world’s first AI patent research agent that makes IP intelligence accessible to everyone. Read more about Perplexity Patents in our
U.S. Stocks Surge As Nvidia Tops $5 Trillion And Fed Cut Looms
The U.S. stocks surged to record highs on Wednesday as investors awaited the Federal Reserve’s interest rate decision. The Nasdaq Composite climbed 0.6%, the S&P 500 added 0.2%, and the Dow Jones rose 231 points, or 0.5%. Markets expect the Fed to cut rates

Comments

Latest