The megacap technological companies last year inserted billions of dollars into artificial intelligence to try and monitor unstrained demand. Hype does not die in 2025.
Target,, Amazon,, Alphabet and Microsoft We intend to spend as much as $ 320 billion in combination on AI technologies and buildings of the 2025 data center, based on comments from their executive directors earlier this year and during the invitation of earnings in the last two weeks.
This is more than $ 230 billion on total capital expenditures in 2024.
Technical companies have already entered a lot of billions of dollars into the AI projects from the debut of Chatgpt 2022, while racing to expand data centers with the NVIDIA ships for graphics for graphics (GPU) and improve their models. A recent rise of China Deepseek sent a shock wave Through the sector, with estimates that suggest that an open code tool cost a fraction of some competitors based in the US.
These fears have encouraged a market sale last week, push shares AI Chipmakers Nvidia and Broadco down for a combined $ 800 billion in one day. This development has forced us to be technologically executives to ask questions about their large consumption plans and whether everything is necessary.
The answer is, so far, not to slow down.
Amazon offered the most ambitious consumption initiative among four, with the aim of pulling out over $ 100 billioncompared to $ 83 billion in 2024. Said executive director Andy Jassy during Call for Earning Company On Thursday, money would mostly go to AI for his Amazon Web Services Department and “Once in Life types of business opportunities”.
“I think our business, our customers and shareholders will be happy, medium to long-term, that we follow the capital opportunity and a business opportunity in the AI,” he said.
Last month Microsoft said it would Assign $ 80 billion In 2025 fiscal year to create data centers for working load AI. Over half of that consumption is to happen in the US, said Brad Smith, president of the company. Microsoft’s fiscal year ends in June.
Alphabet target at $ 75 billion in capital expenditures this year, with A $ 16 billion up to $ 18 billion is expected In the first quarter. Finance chief Anat Ashkenazi said on Tuesday, on the invitation of the earnings that most consumption would head to “technical infrastructure, primarily for the servers, followed by data centers and networking.”
In the meantime, the target of the whole Mark Zuckerberg Set AI Capex of your company Budget at 60 billion up to $ 65 billion In January, 2025 he called “Defining the Year for AI.” In a Facebook postHe said the move would help “unlock the historical innovation and expand American technological leadership.”
The other three so -called magnificent 7 are Apple, Tesla and Nvidia.
AppleConsumption on AI is a difficult project, it often appears in operational costs because the company rents capacity for training from cloud service providers. The models that supported Apple Intelligence were Dressed on Google Cloudfor example. Apple also rents cloud capacity from AWSA azure.
“On the Capex part, it is important to remember that we use a hybrid approach in which we do things in international and we have certain partners we deal with from the outside where Capex would appear in their jobs,” said Tim Cook CEO at the invitation for earnings last year.
Tesla After a earning report at the end of January, he said that the capital expenditures related to AI were about $ 5 billion in 2024, out of a total of $ 11.34 billion. The company expects its consumption of AI to be straight from year to year.
Tesla built a “training cluster” called Cortex at its Texas facility, which will be used to train a model behind the technology of the company’s self -employment and humanoid robotics, which is currently in development.
Nvidia does not report the results only later this month. And it will look very differently by Capex figures because Nvidia develops and supplies AI technology, not buying it.
For Amazon, Google and Microsoft, AI consumption is high, but it should result in great benefits for its cloudy companies, which are major growth drivers. Everyone said that clients are looking for more AI tools and that they plan to start more working loads in the cloud.
But in the last quarter, the cloud numbers were weaker than expected, and all three companies lacked consensitive estimates. The big reason was the lack of supply.
“I predict that these limitations really start to relax in the second half of 2025,” Amazon Jassy said.
In Microsoft, Azure Cloud’s side and foreign company entered the better than the management predicted, but outside AI, Azure lagged behind internal projections due to disappointing sales to clients through partners, said Finance Chief Amy Hood on the invitation of earnings. Microsoft renews its sales approach when it comes to balanced with more traditional IT processes, Hood said.
– CNBC -ov Jordan Nolelet, Lora Kolodny, Kif Leswing, Jonathan Vanian, Ashley Capoot, Jennifer Elias and Annie Palmer contributed to reporting
