Watch Desk posted an update
Amazon, Microsoft, Alphabet and Meta plan to spend at least $720bn on capital investment this year, with most of it going towards AI infrastructure, The Verge reports. The figure comes after the companies’ latest earnings calls.
Why it mattersThe report says that spending is not yet bringing the promised returns into clearer view, while the companies show no sign of slowing on their own. It also points to more than $1tn in spending commitments beyond this year. That is a vast build-out, and a reminder that pouring money into AI capacity is not the same as proving it will pay off.
Discuss: How long should investors tolerate AI infrastructure spending without clearer returns before they demand a slowdown?
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