Big Tech AI data center buildout to continue despite lack of returns
The Verge reports that Amazon, Microsoft, Alphabet, and Meta plan at least $720 billion in capital expenditures this year, mostly for AI infrastructure, on top of over $1 trillion in prior commitments. Despite no closer to promised returns, the buildout will not slow on its own, requiring external intervention to stop it.
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The Verge AIEllen Thomas
After four of the biggest competitors in the AI race held quarterly earnings calls late last month, two things are clear: Big Tech is not done spending record amounts on the AI data center buildout, and the AI data center buildout is not any closer to yielding its promised returns. A third thing is also starting to become clear - Big Tech will not be slowing down, at least not on its own. Amazon, Microsoft, Alphabet, and Meta told investors they're planning to spend at least $720 billion on CapEx this year alone. Most of that will go toward AI infrastructure. That's on top of at least $1 trillion in spending commitments that have bee … Read the full story at The Verge.
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