Despite talk of big tech scaling back AI investment, 4companies' combined capital expenditure reached 1,680billion dollars
Although the possibility of big tech scaling back AI investment has been raised, the estimated combined capital expenditure of Google, Microsoft, Amazon, and Meta for the 4companies was 6quarter was 1,680billion dollars, up 74% year on year. This increase in spending is putting pressure on free cash flow (FCF) and stock prices.
Although speculation has emerged that big tech may moderate the pace of its AI investment, market estimates still point to substantial investment. According to market research firm Visible Alpha's consensus, the estimated combined capital expenditure of Google, Microsoft, Amazon, and Meta for the 4companies' 6quarter was 1,680billion dollars, up 74% from the same period a year earlier.
This increase in spending is said to be putting pressure on the 4companies' free cash flow (FCF) and stock prices. In the results for the 6quarter, spending items related to this and cash flow reporting will draw attention.
Since the beginning of this year, only Google's parent Alphabet has outperformed the S&P500 return. The other major big tech companies remain below the index return.
SpaceX has entered into a contract to receive per month 12hundred million5000ten thousand dollars from Anthropic in exchange for providing some of the computing resources of its AI division, xAI. The contract is presented as an example of monetizing computing resources and services.
SpaceX invested in its AI division last year 127hundred million dollars, and is expected to invest more than 370hundred million dollars this year. The company said that the scale of its AI-related spending greatly exceeds its investment in the rocket business.
Meta is considering entering the cloud computing business by utilizing its own AI infrastructure. Amazon, Microsoft, and Google have been providing cloud services for more than 10years.
Companies are seeking ways to improve investment efficiency. Resource sharing and utilizing business divisions have been cited as examples.
Sources: 뉴시스 경제
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.