Summarize this content to 2000 words in 6 paragraphs in Arabic Big Tech\u2019s massive spending on artificial intelligence is set to continue unchecked in 2025 after Amazon topped its rivals with a planned $100bn-plus investment in infrastructure this year.Spending by the four leading US tech companies had already surged 63 per cent to historic levels last year. Now executives are vowing to accelerate their AI investments, dismissing concerns about the vast sums being bet on the nascent technology.Microsoft, Alphabet, Amazon and Meta have reported combined capital expenditure of $246bn in 2024, up from $151bn in 2023. They forecast spending could exceed $320bn this year as they compete to build data centres and fill them with clusters of specialised chips to remain at the forefront of AI large language model research.The scale of their spending ambitions \u2014 announced alongside their fourth-quarter earnings \u2014 has surprised the market and exacerbated a sell-off caused by the release of an innovative and cheap AI model from Chinese start-up DeepSeek in late January.Microsoft and Google parent Alphabet each saw $200bn wiped from their market value after reporting weaker than expected growth in their cloud computing divisions alongside steep increases in capital spending. Google\u2019s 8 per cent drop on Wednesday was its fifth-worst trading day in the past decade.\u201cThe unbridled enthusiasm across the entire \u2018Magnificent Seven\u2019 has been replaced by pockets of scepticism and created some \u2018show me\u2019 situations,\u201d said Jim Tierney, head of the concentrated US growth fund at AllianceBernstein. \u201cThe concerns that I\u2019ve had since summer are magnified today.\u201dAmid the hype about AI\u2019s transformative potential, shareholders worry that doubling down on spending without a commensurate increase in revenues could eat into capital that would otherwise be returned in the shape of buybacks and dividends, whilst starving non-AI business lines.Google has been opaque about usage and revenue from its Gemini chatbot, while companies have been wary of adopting Microsoft\u2019s glitchy and costly Copilot \u201cagents\u201d to improve workforce productivity.\u201cIf or when we see the cloud growth acceleration at Google or [Microsoft\u2019s] Azure, or see Copilot uptake improve, investors will be more comfortable with spending at Alphabet or Microsoft,\u201d said Tierney. \u201cCheaper and more commoditised AI models will probably amplify investor concerns in the meantime.\u201dDeepSeek\u2019s R1 model was emblematic of such fears. The Chinese AI lab\u2019s claim to have built a reasoning model with similar capabilities to Google and OpenAI\u2019s products at a fraction of the price \u2014 and without access to Nvidia\u2019s most advanced graphic processing units \u2014 caused the chipmaker\u2019s stock to plunge 17 per cent, erasing $600bn in one day, from which it has only partially recovered.Big Tech chiefs have held their nerve. On Tuesday, Google\u2019s Sundar Pichai said in defence of his plan to spend $75bn in 2025 \u2014 up 42 per cent from $53bn last year \u2014 that the AI opportunity was \u201cas big as it comes, and that\u2019s why you\u2019re seeing us invest to meet that moment\u201d. DeepSeek would add to demand by showing how new techniques could make it cheaper and spur new lines of research, he said.Microsoft\u2019s Satya Nadella said two weeks ago in Davos: \u201cI am going to spend $80bn building out Azure, customers can count on Microsoft.\u201d He reiterated his belief in the folly of slowing down and failing to capitalise on its early backing of start-up OpenAI.And on Thursday, Amazon CEO Andy Jassy topped Google and Microsoft by forecasting more than $100bn in capital expenditure this year, up from $77bn in 2024 and more than double the $48bn of the previous year. The vast majority will go towards data centres and servers for Amazon Web Services, and Jassy said he was simply responding to \u201csignificant signals of demand\u201d. The stock fell as much as 7 per cent in after-hours trading.\u201cGrowth is cooking along a little bit, but the appetite to invest hasn\u2019t been curtailed,\u201d said Jeff Pearson, vice-president of cloud strategy at consultancy Presidio. \u201cThey are ploughing ahead even if the return on investment seems distant.\u201dMeta received a more positive reception to its earnings, with its shares rising even as chief Mark Zuckerberg pledged to spend \u201chundreds of billions\u201d more on AI, on top of the $40bn invested in 2024.\u201cInvestors have embraced Meta, even though their capex is growing, because there is a real-time return-on-investment improvement in client spending that is measurable,\u201d said Tierny, referring to Meta\u2019s use of AI to improve ad targeting on Facebook and Instagram.Meta\u2019s success in showing tangible returns from AI investment stood in contrast to Google, which faces new competitors and the difficult task of integrating AI into search without cannibalising its core advertising business.The search giant has introduced brief answers, or \u201cAI overviews\u201d, at the top of search results, but these are displacing its lists of links, the first of which are often lucratively sponsored.Nevertheless, \u201cif there\u2019s meant to be cracks in Google\u2019s search empire, it certainly isn\u2019t showing up yet\u201d, said Bernstein analyst Mark Shmulik, pointing to a 13 per cent growth in ad revenue to $54bn in the final three months of 2024 alone. \u201cGoogle hasn\u2019t missed search expectations even once since ChatGPT launched nine quarters ago.\u201dSpending among the \u201cMagnificent Seven\u201d \u2014 which also includes Apple, Nvidia and Tesla \u2014 dwarfs the rest of the US benchmark S&P 500. Their capital spending rose 40 per cent in 2024 compared with 3.5 per cent among the remaining 493 companies, according to Soci\u00e9t\u00e9 G\u00e9n\u00e9rale. Profits among the elite group soared by a third in the same period, versus 5 per cent among the rest.The spending spree is not limited to publicly listed companies, and neither Deep Seek nor fears of an AI bubble have slowed the flow of capital into Silicon Valley start-ups.OpenAI\u2019s Sam Altman has formed a partnership with SoftBank and Oracle to invest $100bn in AI-related US infrastructure, potentially rising to half a trillion over time. The Japanese investor is in talks to invest $25bn in the start-up at a valuation of $260bn.\u201cCould there be an AI winter at some point? Sure,\u201d said Rishi Jaluria, an analyst at RBC Capital Markets. \u201cBut if you\u2019re in a position to be a leader, you can\u2019t take your foot off the gas.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Big Tech\u2019s massive spending on artificial intelligence is set to continue unchecked in 2025 after Amazon topped its rivals with a planned $100bn-plus investment in infrastructure this year.Spending by the four leading US tech companies had already surged 63 per cent to historic levels<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-196608","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/196608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=196608"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/196608\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=196608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=196608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=196608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}