Tech giants to spend $320 billion on AI in 2025 – Meta, Amazon, Alphabet & Microsoft lead the race! What about Apple, Tesla, and Nvidia?
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Why are tech giants increasing AI investments?
The push for AI expansion started in 2022 after the introduction of ChatGPT. Since then, companies have been pouring billions into AI projects, focusing on building massive data centers powered by Nvidia GPUs. The emergence of China’s DeepSeek, an open-source AI tool developed at a fraction of U.S. competitors' costs, has added pressure on American firms to accelerate their AI advancements.
Concerns over market competition led to a selloff last week, causing Nvidia and Broadcom’s stock values to drop by a combined $800 billion in a single day. Despite this, U.S. tech CEOs remain committed to expanding AI spending, seeing it as a long-term growth opportunity.
Here's company-wise AI spending plans for 2025
Amazon: Over $100 Billion for AI and Cloud Expansion
Amazon has outlined the most ambitious AI spending plan, surpassing $100 billion in 2025, up from $83 billion in 2024. CEO Andy Jassy emphasized that most of this budget will be allocated to Amazon Web Services (AWS), which he called a “once-in-a-lifetime type of business opportunity.”
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