Tech behemoths like Google, Microsoft, Apple, and Amazon are predicted to invest $1 trillion in AI over the next several years.
It is predicted that $1 trillion will be invested worldwide in artificial intelligence (AI) over the next several years, with major tech companies like Google, Microsoft, Apple, and Amazon investing heavily in both external initiatives and their own technology, according to Business Insider.
To what extent has big tech made AI investments?
Google : The report claims that Google has invested $3 billion in the construction and expansion of its data centers and $60 billion in the training of artificial intelligence on Reddit posts.
But over the past few months, the massive search engine has also launched several items that it had to pull back because of errors.
xAI: Elon Musk’s chatbot, xAI Grok, will be trained on 100,000 Nvidia H100 GPUs, which are expected to cost between $30,000 and $40,000 apiece. This implies that xAI would have to spend between $3 and $4 billion on artificial intelligence chips.
Large language models can be processed using Nvidia’s H100 GPUs, which makes the processors essential for creating artificial intelligence.
OpenAI: This year, OpenAI might invest up to $8.5 billion, according to The Information.
According to the report, this might include $4 billion for renting Microsoft’s server capacity, $3 billion for developing AI models, and $1.5 million for staff expenses.
Meta:By the end of 2024, Mark Zuckerberg, the CEO of Meta, intends to buy 350,000 Nvidia GPUs, bringing Meta’s total GPU collection to approximately 600,000.AI spending might push the company’s costs to $50 billion, according to a Quartz piece that referenced a JPMorgan analyst.
Apple: Research and development has been Apple’s primary focus for the past five years, according to a MarketWatch report that quoted Apple CFO Luca Maestri on the company’s first-quarter earnings call. The precise amount spent on AI was not specified, though.
Microsoft: Based on leaked business records, a Business Insider story stated that Microsoft intends to acquire 1.8 million AI chips by the end of the year to increase its data center capacity.
During the company’s third-quarter results call in April, Amy Hood, the CFO of the internet behemoth, stated that capital expenditures, which include artificial intelligence and cloud services, will rise “materially.”
Amazon: According to the source, Amazon aims to spend over $150 billion on data centers in the next 15 years, with $80 million going into Amazon’s second AWS Generative AI Accelerator program. The company is also developing Metis, a chatbot to rival OpenAI’s ChatGPT.
Additionally, the business intends to invest $230 million in businesses using generative AI.
To what extent have big tech funded startups?
OpenAI has received $13 billion from Microsoft, and OpenAI has also invested in firms such as FigureAI and 1X Technologies.
Amazon contributed $4 billion, Google contributed $2 billion, and Sam Altman, the CEO of OpenAI, invested in Thrive AI Health, an AI health firm.
