Meta, in particular, has indicated that it needs to spend billions more on chips and data centers for AI than previously anticipated. This trend reflects the Silicon Valley parable that the biggest fortunes are made not by the miners, but by the people selling the shovels, with Nvidia, a chip sales company, being a prime example as its sales have more than tripled over the past year.
Key takeaways:
- The tech industry is investing heavily in artificial intelligence (AI), with companies like Amazon, Meta, and Microsoft spending tens of billions of dollars on AI infrastructure.
- Microsoft, Meta, and Alphabet have spent more than $32 billion combined on data centers and other capital expenses in the first three months of 2024 alone, with no plans to slow down their AI spending.
- Meta announced it needs to spend billions more on chips and data centers for AI than it had previously indicated.
- The surge in AI spending has benefited companies like Nvidia, whose chip sales have more than tripled over the last year.