US Tech Giants Spend $1.1 Trillion on AI

Since the AI boom in 2023, Google, Amazon, Microsoft, and Meta have spent a total of $1.1 trillion on AI, mostly on data centers, chips, and power. This year, their spending is expected to hit $745 billion, with no signs of slowing down.

The big spending is affecting supply chains, and Apple faces higher costs and tight memory supplies, which could hurt its sales and profits. Analysts say success depends on labs like OpenAI and Anthropic getting enough funding.

Meanwhile, AI is spreading in tech and business, boosting cloud demand. Meta's latest report shows ad revenue up nearly 30% year over year. Analyst Rishi Jaluria says there's no end in sight to this spending, and investors need to balance AI bets with core business.