Silicon Valley’s AI Spend Goes Berserk as Microsoft Starts Cashing In

Meta, Apple, Microsoft and Amazon have reported all the quarterly profits this week, and there was a common thread linking them together: a boom in AI and plans to increase it more, exceeding analysts’ expectations.

Although capital expenses over expectations often do not tend to make investors specially happy, it has had a largely opposite effect this week, especially for Meta and Microsoft, both of whom saw pop music in their shares after versions.

And microsoft, to which she was published The largest semester capital spending expectations everThe support in the shares pushed the technology giant to become the second company ever to reach the market evaluation of 4 trillion dollars, when it was briefly violated on Thursday.

This step was largely because both Meta and Microsoft finally got revenues to show their investments.

Meta’s advertising revenues, a huge money maker of Tech Giant, came during the past quarter billion dollars before Wall Street’s expectations, and CEO Mark Zuckerberg attributed this to spreading artificial intelligence in the advertising system. Zuckerberg continued to assure investors that this surprising increase in revenue was continuing, saying it was Billion dollars Investment in building a team dedicated to the creation of “Superntyligent” will lead to artificial intelligence for more rewards for its advertising work.

Microsoft I mentioned These sales increased by 18 % over last year, and the revenues of the AZURE $ 75 billion cloud computing platform in this fiscal year exceeded 34 % over last year. Revenues from the company’s productivity and business operations also exceeded expectations, and the company’s executive managers have shared that business programs sales were partially reinforced thanks to the adoption of AI Microsoft 365 Copilot products on a large scale.

All news combined raises one question: Has a bet of artificial intelligence in Silicon Valley in the end?

An artificial intelligence spending boom

Meta was in the midst of AI’s batch of billions of dollars after Zuccerberg admitted that the company had left competitors in the artificial intelligence race. The batch was characterized by employing high -level strategic talents Overfishing One of Openai’s employees, which tends to multiple years, with a value of millions of dollars.

Meanwhile, the company is also running in data centers. Last month, Zuckerberg said that Mita would invest Hundreds of billions of dollars in artificial intelligence data centers. The first multiple data centers in the company will be unveiled next year, and Zuckerberg said in a post Subjects Calculate that one of these data centers “covers a large part of the Manhattan imprint.”

This week, Meta said she expects to reach between 66 billion dollars and $ 72 billion this year, and it is expected to spend more next year on data and employment centers.

On the other hand, Microsoft said it expects to spend more than $ 100 billion next year, with many of them towards Amnesty International. In this next quarter, the company looks forward to $ 30 billion in capital expenditures, and again for mostly for artificial intelligence, while the company’s standard expectation.

Apple has also published better revenues than expected to report its profits this week, but this is often attributed to iPhone sales. Nevertheless, CEO Tim Cook told investors during the company’s profit call that the technology giant was planning to “” “Significantly“Increased investments in artificial intelligence to catch the competitors and were open to acquire this.

Did artificial intelligence ultimately ask to catch up with the knees?

One of the biggest concerns when it comes to Amnesty International is regarding spending. Although Silicon Valley flows with countless dollars – more than $ 300 billion this year alone, according to the numbers of Financial timesNot everyone thinks that the demand for artificial intelligence will expand accordingly. If this does not happen, this will lead to a major problem of industry.

in paper It was published earlier last month, and the Federal Reserve claimed that the greatest challenge with obstetric intelligence was not the possibility of technology itself, but rather made people and companies already use it. Technology has not necessarily adopted widely outside the fields of technology, science and financing, and is mostly published by large companies.

As technology improves, the demand for artificial intelligence must also increase, but by mystery. If this demand does not grow as expected, the federal reserve paper may warn, it may have “severe consequences”, just like excessive railways in the nineteenth century and the economic depression that followed.

The answer to whether the demand for artificial intelligence will expand to the level of investment still is not in the final yes or not, but this round of profits gave a large dose of hope for artificial intelligence bulls.

But the excessive risk of spending is still present, as technology giants continue standard pledges to investment: if the increase in investments does not follow a concrete increase in demand and revenues, especially for the basic companies of companies, the possibility of “catastrophic consequences” still exists.