Big-tech Companies’ AI Expenditure to hit $240 billion in 2024

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As a seasoned crypto investor with a keen eye for spotting trends and opportunities, I find myself both intrigued and cautiously optimistic about the relentless pursuit of AI dominance by Big Tech. Having witnessed the rise and fall of numerous technological revolutions, I’ve learned to appreciate the transformative power that these advancements can bring.

Leading technology companies such as Microsoft, Amazon, Alphabet, and Meta are making significant strides in the Artificial Intelligence (AI) sector with their spending expected to surpass previous records. Collectively, these tech titans plan to spend more than $240 billion on AI by 2024, marking a substantial increase compared to current expenditures.

According to a study by Dataconomy, it’s becoming common for all significant organizations to scramble for advanced AI technologies and infrastructure, in order to maintain their competitive edge.

Amazon, the leading e-commerce giant, anticipates spending a substantial amount, around $75 billion, on its operational costs this year. Similarly, social media titan Meta plans to shell out more than $38 to $40 billion to boost its presence and advancements in the artificial intelligence sector.

In addition to its efforts, Microsoft has invested a whopping $20 billion into AI advancements over the past quarter. Meanwhile, Alphabet has openly acknowledged that AI plays a crucial role in their operations, as around 75% of their coding is done by AI. They aim to further leverage this technology with increased investment.

In the first half of 2023, these tech titans concentrated a staggering $74 billion into capital investments. This figure skyrocketed to an impressive $109 billion in the second half.

In the first half of 2024, expenses amounted to a staggering $104 billion – a significant jump of 47% compared to the same period last year. Currently, it stands at $171 billion in Q3 and may reach the projected annual total of $240 billion by the end of this year.

The accomplishments we’ve made shape how AI can bolster sophisticated techniques significantly. However, the true transformation occurs when major tech companies unlock AI’s complete potential to revolutionize industries and fundamentally reshape their operations.

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2024-11-27 15:33