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Big tech corporations show no signs of slowing down their spending on synthetic intelligence; The effects still seem very distant.
By Karen Weise
Karen Weise covers Seattle tech.
Mark Zuckerberg, CEO of Meta, 2023 by pointing to it as “the year of efficiency”. Like many of its big tech peers, Meta has cut jobs and put its expansion plans on hold.
Then came AI.
Zuckerberg began this year by saying that his company would spend more than $30 billion in 2024 on next-generation infrastructure. In April, it increased that amount to $35 billion. On Wednesday, it increased it to at least $37 billion. And he said Meta would spend even more next year.
Zuckerberg said he would build too fast “than too late” and allow his competition to gain a gigantic advantage in the field of AI. race.
The tech industry’s biggest corporations made it clear last week that they have no plans to rein in their spending levels on synthetic intelligence, even as investors worry that a significant profit will come later than we thought.
In the last quarter alone, Apple, Amazon, Meta, Microsoft, and Alphabet, Google’s parent company, spent a combined $59 billion on capital expenditures, up 63% from the previous year and up 161% from 4 years ago. Much of this was spent on construction knowledge centers and integrating new IT systems to expand synthetic intelligence. Only Apple doesn’t have a dramatically higher spend because it rarely builds the most complex AI. systems themselves.
Capital spending in the last quarter rose to 63 from last year.
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