Chart of the Week: 2025's monster AI spend is now revealed

Published On Feb 8, 2025, 7:34 AM

In 2025, the major tech players—Nvidia, Microsoft, Meta, Amazon, and Alphabet—are projected to collectively spend approximately $325 billion on AI technology, which is a 46% increase from last year. Notably, companies like Meta and Microsoft are significantly increasing their investment, with Microsoft planning to raise its spending from $56 billion to $80 billion, while Amazon is committing $105 billion. These investments underscore the strong demand for AI technology and indicate that these companies are determined to secure a competitive advantage in AI, despite rising costs and uncertainties about profitability in the short term. Companies like Amazon emphasize that their spending is tied to observable demand signals in the market, hinting at a long-term growth perspective for shareholders.