Big Tech’s massive expenditure for artificial intelligence should continue to deactivate in 2025 after Amazon took over his competitors with a planned investment of over $ 100 billion in the infrastructure this year.
The expenditure of the four leading US technology companies had already increased by 63 percent to the historical level last year. Now managers promise to accelerate their AI investments and to reject concerns about the aspiring technology with regard to the large amounts.
Microsoft, Alphabet, Amazon and Meta reported a combined investment expenditure of USD 246 billion in 2024, compared to $ 151 billion in 2023. They predict that the expenses this year could exceed $ 320 billion stand AI Large language model research.
The extent of its spending ambitions-in addition to the income of the fourth quarter of the quarter, surprised the market and exacerbated a sale, which was caused by the publication of an innovative and cheap AI model by Chinese start-up Deepseek at the end of January.
Microsoft and Google Parent Alphabet each saw $ 200 billion from their market value after they reported weaker growth in their cloud computing departments in addition to strong capital expenditure. Google’s 8 percent decline on Wednesday was the fifth-written trading day in the last decade.
“The unbridled enthusiasm in the entire” Magnificent Seven “was replaced by skepticism and some” Show Mir “stalls,” said Jim Terney, head of the concentrated US growth fund at Allianceberg. “The concerns I’ve had since summer are being enlarged today.”
In the midst of the hype about the transformative potential of AI, the shareholders fear that the doubling of expenses could incorporate into the capital without an appropriate increase in income, which is otherwise returned in the form of return and dividends, while they are starving in non-AI business limits.
Google was opaque with the use and income from the Gemini chat bot, while companies were careful to take over Microsoft’s Glitchy and costly copilot “Agents” to improve labor productivity.
“If or if we see the cloud growth acceleration on Google or (Microsoft’s) Azure or improves the Copilot recording, investors will be more comfortable with expenses at Alphabet or Microsoft,” said Terney. “In the meantime, cheaper and more boring AI models will probably increase investor problems.”
Deepseeks R1 model was a symbol of such fears. The assertion of the Chinese Ki laboratory, an argumentation model with similar functions such as Google and Openais products at a fraction of the price -and without access to Nvidia’s most advanced graphics processing units -solved the chipmaker’s stock by 17 percent and deleted USD 600 billion . On a day that has only partially recovered.
Big Tech Chiefs kept her nerve. On Tuesday, Sundar Pichai from Google said that in 2025 he was able to spend 75 billion USD – by 42 percent compared to US 53 billion. ” Deepseek would contribute the demand by showing how new techniques could make it cheaper and stimulate new research lines, he said.
Satya Nadella from Microsoft said in Davos two weeks ago: “I will spend $ 80 billion to expand to expand Azure, customers can rely on Microsoft.” To benefit from start-up openai.
And on Thursday the CEO of Amazon, Andy Jassy, Google and Microsoft by introduced Prediction of more than $ 100 billion In the investment expenditure this year of $ 77 billion in 2024 and more than twice as high as with $ 48 billion of the previous year. The vast majority will go to Amazon Web Services in data centers and servers, and Jassy said he simply reacted to “considerable demand signals”. The stock was up to 7 percent in the trade with after-hours.
“The growth is a bit with cooking, but the appetite for investments was not limited,” said Jeff Pearson, Vice President of the Cloud Strategy at Consultancy Presidio. “They plow ahead, even if the return on investment appears far.”
Meta received a more positive reception for his profits, whereby his shares also promised to promote Chief Mark Zuckerberg “Hundreds of billions” More about AI, in addition to USD 40 billion, which were invested in 2024.
“Meta has accepted investors, although their scope of investment is growing because the improvement of the real-time improvement of customer expenses is attributed in real time,” said Tierey and moved into Instagram.
In contrast to Google, the success of META to show concrete returns from AI investments was, which with new competitors and the difficult task of integrating AI into the search without integrating the nuclear business.
The search giant briefly introduced short answers or “AI overviews” in the search results, but these displace its left lists, the first of which are often sponsored lucratively.
Nevertheless, “if there should be cracks in Google’s search empire, it will certainly not be displayed yet” alone. “Google has missed the viewfinder expectations again since Chatgpt started nine quarters.”
Expenses among the “great seven” – to which Apple, Nvidia and Tesla also include – rose the rest of the US benchmark S&P 500. In 2024, their capital expenses rose by 40 percent compared to 3.5 percent below the remaining 493 Company according to Société. Générale. The profits under the elite group rose by a third compared to 5 percent in the same period.
The spending stroll is not limited to publicly listed companies, and neither deep search nor the fears of a AI bubble have slowed the capital flow in start-ups in Silicon Valley.
Sam Altman von Openaai has closed a partnership with Softbank and Oracle to invest $ 100 billion in the US infrastructure in connection with AI, which may increase over time over time. The Japanese investor is in talks to invest $ 25 billion in the start-up with an evaluation of USD 260 billion.
“Could there be a AI winter at some point? Sure, ”said Rishi Jaluria, analyst at RBC Capital Markets. “But if you are able to be a leader, you cannot lose your foot from the gas.”
