A.I. Spending Sets a Record, With No End in Sight
Google, Amazon, Microsoft, and Meta reported over $130 billion in quarterly capital expenditures on A.I. data centers, a record figure that is 71% higher than the same quarter last year. The companies expect to continue spending heavily on A.I. as they see it as a once-in-a-lifetime chance to grow.
Four tech giants - Google, Amazon, Microsoft, and Meta - reported a total of $130.65 billion in capital expenditures in the first quarter, largely on A.I. data centers. This figure is more than three times the cost of the Manhattan Project and 71% higher than the same quarter last year. The companies generated $431 billion in sales and $151 billion in profit in the quarter, enabling them to handle the heavy A.I. spending. Meta raised its spending forecast for the year to between $125 billion and $145 billion. The tech giants have formed deep partnerships with A.I. labs like Anthropic and OpenAI, investing billions in them. Amazon spent $43 billion on capital expenditures, primarily on data centers, and has focused on building Project Rainier, massive A.I. data centers for Anthropic.
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