Microsoft's Satya Nadella Just Gave Nvidia Stock a Reality Check
Tech giants are going all-in on artificial intelligence (AI). Microsoft (NASDAQ: MSFT) recently announced plans to spend $80 billion this year building out AI data centers to support training advanced AI models and deploying those models to the cloud. Meta Platforms is following suit, with up to $65 billion allocated for AI infrastructure in 2025.Not to be outdone, Amazon has upped its capital spending plan to $100 billion for the year, although not all of this will go toward AI computing capacity. Lastly, Alphabet boosted its capital spending plan to $75 billion for 2025, with much of that related to AI.On top of all this spending, the Trump Administration's Stargate project involves another $500 billion in AI investments over the next four years, and the European Union is aiming to mobilize 200 billion euros ($209 billion) for AI investments. Long story short, an enormous amount of capital is rapidly being spent on AI data centers and the necessary equipment to train and run powerful AI models, particularly graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA).Continue reading
Tech giants are going all-in on artificial intelligence (AI). Microsoft (NASDAQ: MSFT) recently announced plans to spend $80 billion this year building out AI data centers to support training advanced AI models and deploying those models to the cloud. Meta Platforms is following suit, with up to $65 billion allocated for AI infrastructure in 2025.
Not to be outdone, Amazon has upped its capital spending plan to $100 billion for the year, although not all of this will go toward AI computing capacity. Lastly, Alphabet boosted its capital spending plan to $75 billion for 2025, with much of that related to AI.
On top of all this spending, the Trump Administration's Stargate project involves another $500 billion in AI investments over the next four years, and the European Union is aiming to mobilize 200 billion euros ($209 billion) for AI investments. Long story short, an enormous amount of capital is rapidly being spent on AI data centers and the necessary equipment to train and run powerful AI models, particularly graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA).
