Big Tech firms such as Microsoft, Amazon, Alphabet, and Meta are making a huge impact in the Artificial Intelligence (AI) realm with their ever-increasing expenditures. The collective spending of these tech behemoths on AI is projected to surpass $240 billion in 2024.
According to recent research by Dataconomy, as the demand for AI-driven tools and infrastructure surges, every major institution is striving hard to stay competitive.
Amazon, the leading e-commerce brand, has one of the largest outlays and is likely to invest $75 billion of capital this year. Meta, the social media giant, is anticipated to spend between $38 and $40 billion to enhance its standing in the AI field.
Microsoft is also engaged in significant progress, having spent $20 billion on its AI foundation in the last quarter. Notably, Alphabet has publicly embraced AI, stating that around 75% of its code is generated by AI, and the company aims to achieve greater efficiency with increased spending.
The magnitude of these investments is remarkable. In the first half of 2023, these tech giants funneled $74 billion into capital investment. In the second half, the figure soared to $109 billion.
Likewise, the expenditure reached $104 billion in the first half of 2024, representing a substantial 47% growth compared to the same period last year. Now, the total has reached $171 billion in Q3 and is likely to reach the projected $240 billion by the end of this year.
These developments highlight how AI investments can fuel advanced methodologies. However, the real transformation will occur when big tech unlocks the full potential of AI to revolutionize industries and reshape work.
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