News Post

In race to build AI, tech plans a big plumbing upgrade

The tech industry is heavily investing in behind-the-scenes technology to support the boom in artificial intelligence (AI). Companies like Amazon and Meta are revamping their data centers and building new facilities to handle AI. Microsoft, Meta, and Alphabet (Google's parent company) have already spent over $32 billion on data centers and other capital expenses in just the first three months of the year. This increased spending on AI infrastructure is reminiscent of the dot-com boom of the 1990s, with companies like Nvidia benefiting from the AI boom. Cloud computing is also playing a role, as major tech companies aim to attract customers by providing hosting services for AI networks. Despite investor backlash, Meta CEO Mark Zuckerberg remains confident in the company's AI investments, urging patience for the long term. Microsoft's generative AI business has contributed significantly to the growth of its cloud computing business, with estimated earnings of $1 billion in three months. Google and Amazon are also seeing an uptick in sales from their cloud divisions, thanks to the increasing contributions of AI. The focus on AI infrastructure encompasses both building cutting-edge models and implementing AI into products and services. However, the industry remains adaptable, with companies like Meta preparing for future possibilities by building infrastructure with fungibility in mind.