$1 Trillion Spent: Tech Giants Bet on AI Future

The world's largest tech companies have spent over $1 trillion on artificial intelligence (AI) since the AI boom began in 2023.

According to a report by the Financial Times, Google, Amazon, Microsoft, and Meta have invested heavily in AI, with the majority of their $745 billion capex this year going towards data centers, new chips, and power.

This massive spending is expected to continue, with no end in sight for growth in capital expenditure (capex), as RBC Capital analyst Rishi Jaluria notes.

The AI investment trend has already started to impact cloud revenue growth at Google, Amazon, and Microsoft, with these companies reporting strong growth in cloud computing due to the increasing demand for AI-driven services.

Meta, which doesn't have its own cloud business, is seeing an increase in advertising revenue thanks to AI, with a nearly 30% rise in ad sales in its latest quarterly report.