{"id":342729,"date":"2025-10-30T08:43:13","date_gmt":"2025-10-30T08:43:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/342729\/"},"modified":"2025-10-30T08:43:13","modified_gmt":"2025-10-30T08:43:13","slug":"meta-google-and-microsoft-triple-down-on-ai-spending","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/342729\/","title":{"rendered":"Meta, Google, and Microsoft Triple Down on AI Spending"},"content":{"rendered":"<p class=\"paywall\">While Microsoft didn\u2019t offer a specific forecast for its AI capital expenditures for the next quarter or coming year, the company\u2019s chief financial officer, Amy Hood, said that the company\u2019s total spend will \u201cincrease sequentially, and we now expect the fiscal year 2026 growth rate to be higher than fiscal year 2025.\u201d<\/p>\n<p class=\"paywall\">Tech companies are making these ambitious plans for more capital spending under the assumption that demand for AI will only continue to grow. But some analysts are raising concerns that the <a href=\"https:\/\/www.wired.com\/story\/ai-bubble-will-burst\/\" target=\"_blank\" rel=\"noopener\">AI market is a bubble<\/a> and will eventually burst.<\/p>\n<p class=\"paywall\">Those worries are being fueled by announcements about enormously expensive, multi-year data center projects and staggered investments. Last month, Nvidia said it would invest \u201cup to $100 billion\u201d in OpenAI, provided that the ChatGPT maker builds and deploys at least 10 gigawatts of AI data centers using Nvidia\u2019s chips. OpenAI, meanwhile, said <a href=\"https:\/\/www.reuters.com\/sustainability\/land-use-biodiversity\/altman-touts-trillion-dollar-ai-vision-openai-restructures-chase-scale-2025-10-29\/\" target=\"_blank\" rel=\"noopener\">just yesterday<\/a> that it was planning to develop 30 gigawatts of computing resources worth $1.4 trillion.<\/p>\n<p class=\"paywall\">Microsoft has committed to putting a total of $13 billion in OpenAI, and it continues to use the company\u2019s frontier AI models, but took a <a data-offer-url=\"https:\/\/www.cnbc.com\/2025\/10\/29\/microsoft-open-ai-investment-earnings.html\" class=\"external-link\" data-event-click=\"{&quot;element&quot;:&quot;ExternalLink&quot;,&quot;outgoingURL&quot;:&quot;https:\/\/www.cnbc.com\/2025\/10\/29\/microsoft-open-ai-investment-earnings.html&quot;}\" href=\"https:\/\/www.cnbc.com\/2025\/10\/29\/microsoft-open-ai-investment-earnings.html\" rel=\"nofollow noopener\" target=\"_blank\">$3.1 billion<\/a> hit in net income this quarter due to losses from that investment. Microsoft said that the ongoing nature of its partnership with OpenAI will result in increased volatility. Going forward, Hood said, the company will exclude any impacts from its OpenAI investment in its financial outlooks.<\/p>\n<p class=\"paywall\">Microsoft CEO Satya Nadella told analysts there are two \u201ccritical\u201d things to consider about how the company views its capital expenditures. The first is that it is finding ways to make its fleet of data centers \u201cfungible,\u201d or interchangeable, meaning they can be easily modified to meet changing customer demands in the future. The second is that the company is expecting to continually modernize its infrastructure.<\/p>\n<p class=\"paywall\">\u201cIt\u2019s not like we buy one version of Nvidia and load up for all the gigawatts we have. Each year, you buy, you ride Moore\u2019s law, you continually modernize and depreciate it, and you use software to grow efficiency,\u201d Nadella said.<\/p>\n<p class=\"paywall\">Mark Moerdler, a senior research analyst covering global software at Bernstein, says that Microsoft is \u201cbuilding capacity in tranches over time and can shift resources, which gives them a lot of protection.\u201d But, he added, \u201cIs there an overall AI bubble? It\u2019s possible, and that they did not answer.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"While Microsoft didn\u2019t offer a specific forecast for its AI capital expenditures for the next quarter or coming&hellip;\n","protected":false},"author":3,"featured_media":342730,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[738,64,13656,2722,15876,340,252,67,132,68],"class_list":{"0":"post-342729","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-artificial-intelligence","9":"tag-business","10":"tag-earnings","11":"tag-google","12":"tag-layoffs","13":"tag-meta","14":"tag-microsoft","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115462236212382632","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/342729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=342729"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/342729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/342730"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=342729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=342729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=342729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}