The massive Big Tech on artificial intelligence is scheduled to continue in 2025 after Amazon topped its competitors on Thursday with an investment of $ 100 billion in infrastructure this year.
Spending by the four leading companies in the field of American technology has already increased by 63 percent to historical levels last year. Executive officials are now pledged to accelerate their investment in artificial intelligence, and have rejected concerns about the huge amounts that are betting on emerging technology.
Microsoft, Alphabet, Amazon and Meta have reported about the compact capital spending of $ 246 billion in 2024, up from $ 151 billion in 2023. They expect spending to exceed 320 billion dollars this year while competing to build databases and fill groups of specialized chips to remain At the forefront Amnesty International Search the big language model.
He surprised the size of the spending aspirations-which were announced alongside their profits in the fourth quarter-the market and the exacerbation of the sale caused by the issuance of an innovative and cheap AI model from the Chinese company Deepseek in late January.
Microsoft and Google Parent Alphabet have witnessed $ 200 billion, which were surveyed from its market value after reporting the weakest growth than expected in cloud computing departments, as well as sharp increases in capital spending. Google decreased by 8 percent on Wednesday, its fifth day of circulation in the past decade.
“The fantasy enthusiasm has been replaced by the entire” Seven “with pockets of suspicion and created some positions” Show Me “,” said Jim Terney, head of the American Development Fund at Alliacebernstein. “The concerns that I have gone through since the summer are magnified today.”
Amid the noise about the transformative capabilities of Amnesty International, shareholders worry that doubling of spending without proportional revenue increased can be eaten in capital that can be returned in the form of re -purchase and dividends, while the starvation of non -AII business.
Google was transparent about the use and revenues of Chatbot Gemini, while companies were cautious against adopting the amazing and costly Microsoft Microsoft agents to improve the workforce productivity.
“If we see or when we see the acceleration of cloud growth in Google or (Microsoft's) Azure, or we see improved Copilot's absorption, investors will be more comfortable with spending in Alphabet or Microsoft,” Terney said. “It is possible that the cheapest artificial intelligence models and more investor concerns are inaugurated.”
R1 Deepseek Model It was a symbol of such fears. The Chinese AI LAB demand to build a thinking model with the capabilities similar to Google and Openai products with a break -up – and without reaching the most advanced graphics processing units in NVIDIA – caused a 17 percent decrease in the chip maker, which wipes 600 billion dollars in one day, which is that I only partially recovered.
Adult technology heads held their nerves. On Tuesday, Google said in defense of his plan to spend $ 75 billion in 2025 – an increase of 42 percent from $ 53 billion last year – that the opportunity of artificial intelligence “was great as it comes, and for this reason we see us invested to meet that moment.” . He said Dibsic will add to the request by showing how new technologies could make the new technologies and stimulate new search lines.
“I will spend $ 80 billion on Azure, customers can count on Microsoft,” Satia Nadella from Microsoft two weeks ago in Davos said. Repeat his faith in the foolishness of slowdown and failure to take advantage of his early support to the start of Openai.
On Thursday, Andy Jassi, the Amazon CEO, Google and Microsoft, topped by Predicting more than 100 billion dollars In capital spending this year, up from $ 77 billion in 2024 and more than 48 billion dollars from the previous year. The vast majority will go to the data centers and servers of Amazon Web Services services, and Jassy said he simply responds to “important demand signals”. The arrow fell up to 7 percent in trading after working hours.
“Growth is a little cook, but the appetite for investment has not been reduced,” said Jeff Pearson, deputy head of the cloud strategy in the consulting. “They are plowing forward even if the return on investing is far away.”
Mita received a more positive reception for her profits, with her shares rising even with President Mark Zuckerberg's pledge to spend “Hundreds of billions” More about artificial intelligence, in addition to $ 40 billion invested in 2024.
Tierny said in reference to Meta's use to invest on Facebook, Facebook and Instagram.
Meta's success was to show concrete returns from Ai Investment, unlike Google, which faces new competitors and the difficult task of integrating artificial intelligence into research without confirming its basic advertising works.
The search giant provided brief answers, or an “artificial intelligence overview”, at the top of the search results, but this removes lists of their links, and the first is often carried out in a profit.
However, “if there are cracks in the Google Research Empire, it is certain that it has not yet appeared,” said Bernstein's analyst Mark Shmoulik, pointing to the growth of 13 percent in advertising revenues to $ 54 billion in the last three months of 2024 alone. “Google has not missed search forecasts even once since the launch of ChatGPT nine quarters.”
The spending between the “wonderful Seven” – which also includes Apple, NVIDIA and Tesla – dwarms the rest of the American standard S&P 500. Capital spending increased by 40 percent in 2024 compared to 3.5 percent among the remaining 493 companies, according to Société Générale . The profits between the elite group increased in the third in the same period, compared to 5 percent of the rest.
The sphere of spending is not limited to companies publicly listed, and did not slow down the deep endeavor or fears of the artificial intelligence bubble flow of capital to startups in Silicon Valley.
Sam Altman of Openai has formed a partnership with SoftBank and Oracle to invest $ 100 billion in the US infrastructure related to AI, and may rise to half a trillion over time. The Japanese investor is in talks to invest $ 25 billion at the start of the start of $ 260 billion.
“Can there be winter of artificial intelligence at some point? Rishi Galoria, an analyst at RBC Capital Markets, said.” But if you are in a position that allows you to be a leader, you will not be able to remove your feet from the gas. “
