Advert
Supported by
Big tech corporations show no signs of slowing their spending on synthetic intelligence, although the effects still seem a long way off.
By Karen Weise
Karen Weise covers Seattle’s technology.
Mark Zuckerberg, executive leader of Meta, calls 2023 “the year of efficiency. ” Like many of its major tech peers, Meta has cut jobs and suspended expansion plans.
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 “too late” and allow his competition to take a big lead in AI. race.
The tech industry’s biggest corporations made clear last week that they have no plans to restrict their spending on synthetic intelligence, even as investors fear a big gain may come later than previously thought.
In the last quarter alone, Apple, Amazon, Meta, Microsoft, and Alphabet, Google’s parent company, spent a total of $59 billion on capital expenditures, up 63% from a year earlier and up 161% from four years ago. It has been spent building knowledge centers and integrating them with new IT systems to expand synthetic intelligence. Only Apple hasn’t particularly increased its spending because it doesn’t build the most complex AI systems themselves.
Capital expenditures in the recent quarter rose consistently with the previous year’s cent.
Thank you for your patience while we determine access. If you’re in gamer mode, exit and log into your Times account or subscribe to the full Times.
Thank you for your patience while we determine access.
Already a subscriber? Sign in.
Do you want all the Times? Subscribe.
Advert