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Tech giants are set to spend $200 billion this year chasing AI

Economic Times

Economic Times · 9m ago

Tech giants are set to spend $200 billion this year chasing AI

Silicon Valley's tech giants, including Amazon, Microsoft, Meta, and Alphabet, are continuing to invest heavily in artificial intelligence (AI) despite previous criticism for the high costs without sufficient results. These companies are set to spend over $200 billion on AI-related capital expenditures this year alone. The race to secure high-end chips and build extensive data centers is driving this spending spree, with deals being made with energy providers, including reviving a nuclear plant. The tech giants aim to convince investors that these investments will lead to future profitability beyond their current business models.

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Elon Musk compares the AI race to playing poker — you need to spend billions every year just to sit at the table

Business Insider

Business Insider · 1y ago

Elon Musk compares the AI race to playing poker — you need to spend billions every year just to sit at the table

Elon Musk compared the AI race to a poker game where companies need to spend billions on AI hardware to stay competitive. He mentioned that Tesla would spend over $500 million on Nvidia AI chips in 2024 and would require several billion dollars worth of hardware to keep up with rivals. Musk emphasized that being competitive in AI now requires a minimum expenditure of several billion dollars per year. Various tech giants are rushing to acquire Nvidia H100 GPUs, which are crucial for building and training language models. Musk also mentioned Tesla's plans to purchase chips from Nvidia and AMD. Additionally, Musk has expressed concerns about Tesla's AI development and the need for more control over the company.

Nvidia will dominate Big Tech’s earnings season again

Livemint

Livemint · 10m ago

Nvidia will dominate Big Tech’s earnings season again

Tech giants like Microsoft, Amazon, Google, Facebook, and Apple are significantly increasing their capital spending to support their AI initiatives. In the first half of this year, they collectively spent $106.2 billion, up 49% from the same period last year. Wall Street predicts their capital spending will exceed $60 billion in the September quarter, resulting in a total spend of approximately $231 billion for the year. However, the extent to which these investments will generate returns is yet to be determined, with limited disclosure from most companies on the revenue impact of their generative AI services. Additionally, issues such as regulation, competition, and potential market slowdowns could affect the success of these investments.

Cisco launches $1 billion AI fund and makes first investments

Economic Times

Economic Times · 1y ago

Cisco launches $1 billion AI fund and makes first investments

Cisco has launched a $1 billion fund to invest in artificial intelligence (AI) startups. The company has already committed nearly $200 million to invest in companies such as Cohere, Mistral AI, and Scale AI. Scale AI is valued at nearly $14 billion, while Cohere and Mistral are reportedly in talks to raise funds at a valuation of $5 billion each. Cisco's move follows other tech giants, including Microsoft-backed OpenAI, Meta, and Amazon, who have also invested in AI startups. Cisco has been actively investing in AI with over 20 acquisitions and investments in recent years.

Nvidia’s staying power is the $2 trillion question

Livemint

Livemint · 1y ago

Nvidia’s staying power is the $2 trillion question

Nvidia, the semiconductor giant, has experienced incredible growth, surpassing a market value of $1.8 trillion. Its success can be attributed to the increasing demand for its chips in artificial intelligence by tech giants like Amazon and Google. Nvidia is set to report its fiscal fourth-quarter results, which are expected to show revenue of nearly $59 billion for the fiscal year, more than double the previous year. Despite the remarkable rise, there are concerns about the sustainability of this growth and potential risks heading into the quarterly report.

Google cuts about 200 staff in global business unit: Report

Economic Times

Economic Times · 3m ago

Google cuts about 200 staff in global business unit: Report

Google recently reduced its workforce by approximately 200 employees within its global business unit, focusing on sales and partnerships. This move is part of a broader trend among major tech companies to reallocate resources towards data centers and AI, while reducing investments in other areas. Earlier, Google announced a reduction of 12,000 jobs. Other tech giants like Meta, Microsoft, and Amazon are also cutting jobs while prioritizing new technological advancements.

Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation - The Economic Times

Economic Times

Economic Times · 25d ago

Alphabet's CapitalG, Nvidia in talks to fund Vast Data at up to $30 billion valuation - The Economic Times

Alphabet's CapitalG and Nvidia are in discussions to invest in Vast Data, potentially valuing the AI infrastructure startup at up to $30 billion. This funding round aims to raise several billion dollars, with both tech giants and private investors participating. Vast Data, known for its AI data center storage technology, has seen significant revenue growth and is a potential IPO candidate. The company collaborates with major tech partners and benefits from the AI surge in the market.

Trump announces $20 billion investment in US data centres

Economic Times

Economic Times · 7m ago

Trump announces $20 billion investment in US data centres

US president-elect Donald Trump announced a $20 billion investment to establish data centers across the U.S., in collaboration with Emirati billionaire Hussain Sajwani, chairman of DAMAC Properties. This move aligns with the global trend of tech giants accelerating data center development for AI applications requiring substantial computing power. Microsoft, for instance, plans to invest $80 billion this fiscal year in AI capacity. McKinsey estimates that global data center spending could surpass $250 billion by 2030.

Around 2,000 software developers hit by Microsoft latest layoffs

YourStory

YourStory · 3m ago

Around 2,000 software developers hit by Microsoft latest layoffs

Microsoft's recent layoffs have impacted around 2,000 roles in Washington, primarily affecting software developers and technical program managers. These cuts are part of a broader shift towards artificial intelligence (AI) initiatives, despite better-than-expected financial results, including a $25.8 billion net income. Other technology giants like Salesforce and Workday are also restructuring to focus more on AI. Microsoft plans to invest $80 billion in AI initiatives this year, reflecting this strategic shift.

Bell Canada to cut 4,800 jobs, cites 'unsupportive' government among factors

Reuters · 1y ago

Bell Canada to cut 4,800 jobs, cites 'unsupportive' government among factors

Canadian media and telecom company, Bell Canada, is set to cut 4,800 jobs as it struggles with declining legacy phone and news business. The company blames the government and regulatory decisions for the need to downsize. Bell's CEO, Mirko Bibic, criticized the federal government for not leveling the playing field with global tech giants and expressed concern over the Canadian Radio-television and Telecommunications decision to allow competitors to use their infrastructure. This restructuring is Bell's largest in three decades and is expected to save the company between C$150-$200 million this year.

In just 3 months, Ramp's valuation jumped to $16B, up from $13B | TechCrunch

TechCrunch · 2m ago

In just 3 months, Ramp's valuation jumped to $16B, up from $13B | TechCrunch

Spend management startup Ramp has raised a $200 million Series E funding round led by Founders Fund, boosting its valuation from $13 billion to $16 billion in just a few months. This follows a $150 million secondary share sale and represents more than double its $7.65 billion valuation from a year ago. CEO Eric Glyman noted "incredible growth" in revenue, previously surpassing $300 million in annualized revenue. Existing investors also contributed to the funding round.

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