AI capex spending from Meta, Microsoft, Amazon, and Alphabet is expected to reach $5.3 trillion over the next few years, Goldman estimated.
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Jennifer Sor
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Tech giants are on pace to double AI spending this year.
Big tech keeps pouring more money into AI data centers, chips, and infrastructure. According to the Financial Times, Google,…
The overall cost has been causing heads to spin, but analysts say they're seeing flowthrough from investments to revenue.
At the same time, AI capital spending, while overlapping with the energy transition somewhat, is also galloping ahead full speed.
Largest US companies on track for US$700 billion in AI capital expenditures this year, versus about US$105 billion in China.
“Surging capex spending related to AI will likely prevent a major increase in the buyback payout ratio," the bank says.
