Megacap technology companies funneled billions of dollars into artificial intelligence last year to try and keep up with unfettered demand. The hype isn’t dying down in 2025.
Meta, Amazon, Alphabet and Microsoft intend to spend as much as $320 billion combined on AI technologies and datacenter buildouts in 2025, based on comments from their CEOs early this year and throughout earnings calls in the past two weeks.
That’s up from $230 billion in total capital expenditures in 2024.
Tech companies have already poured many billions of dollars into AI projects since ChatGPT’s 2022 debut, as they race to expand data centers with boatloads of Nvidia’s graphics processing units (GPUs) and to advance their models. The recent rise of China’s DeepSeek sent a shockwave through the sector, with estimates suggesting the open-source tool cost a fraction of some U.S.-based competitors to create.
Those…
