Tech giants continue to spend money and are estimated to break trillion yuan within five years
Is the amount of investment in the technology sector expected to break the mark?
Tech giants have recently been actively investing in related infrastructure in the field of artificial intelligence (AI). According to current estimates, the cumulative investment amount is expected to exceed 1 trillion US dollars within five years. According to this trend, the technology industry has officially entered the AI arms race era.
Business Insider reports that according to an analysis report by research firm Bernstein (Bernstein), the tech giant $Amazon(AMZN.US$Amazon, $Microsoft(MSFT.US$Microsoft, $Alphabet-A(GOOGL.US$Google, $Meta Platforms(META.US$Meta and $Apple(AAPL.US$Apple will invest a total of 200 billion US dollars in AI-related infrastructure this year, such as land, data centers, servers, and network equipment. At this rate, cumulative spending over five years could exceed $1 trillion.
Over the next few years, these companies' spending will focus on graphics processors (GPUs) and data centers that support their AI vision.
Analysts said that the five tech giants mentioned above are expected to spend 200 billion US dollars this year, which will surpass the 90 companies that are ranked next $S&P 500 Index(.SPX.US$The total amount that S&P 500 Telecom expects to spend in this area next year. Such large-scale “concentrated spending” is comparable to the total spending of 166 billion US dollars by oil giants in 2013.
The report shows that global tech giants have actively reduced spending in the past two years, but in recent years capital expenditure accounts for about 10% of annual revenue, and will increase to 14% or 15% in the next two years.
Bernstein's analysis also points out that the past few rounds of large-scale investments in the technology industry have continued for one to three years, but this time they may continue for a long time. Analysts said, “If big tech companies don't invest now, they will expose themselves to the risk of operations being disrupted.”
Source: Nanyang Siang Pao
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