Technology giants step up investment in AI

Investment in AI will help maintain competitiveness

Investment in AI continues to soar amid a race to innovate. Technology giants have announced a record increase in funding for artificial intelligence infrastructure in 2025. Amazon, Microsoft, Google and Meta will invest a combined US$320 billion. The higher rates indicate serious competition from Chinese developers. 

The release of the Chinese AI model DeepSeek was a major event for the sector. It demonstrated the potential of PRC companies, which are serious competitors to the US IT giants. As a result, capital investment in the AI sector has increased by 30% year-on-year to 2024. Some investors are sceptical about the need for more spending. However, major developers are confident in the high potential of AI models.

According to Business Insider, companies are planning the following investments for 2025:

1. The leader in AI spending is Amazon, which plans to allocate US$100 billion.
2. This compares to US$77 billion in 2024.
3. Microsoft has earmarked US$80 billion for AI infrastructure.
4. Alphabet will invest US$75 billion, although analysts expected an investment of US$58 billion.
5. Meta estimates its investment at US$60-65 billion, up from US$39 billion last year.

Andy Jassy of AWS says the company sees AI as a promising business opportunity. However, it will take aggressive investment to get the right results.  

Developer expectations

Satya Nadella noted that Microsoft’s efforts are already having a tangible impact. Annual AI revenue has grown by 175% to US$13 billion. The CEO is confident that enhanced efficiency and availability of AI models will drive demand.

Alphabet is also optimistic about the potential of artificial intelligence. At the same time, experts point to instability in the cloud and AI sectors.

Meta is focusing on the development of open-source models. In addition, the company has monetised AI projects through sophisticated targeting. This approach has attracted the attention of investors interested in funding further development.

The market has had a mixed reaction to the growing investment in AI infrastructure. Meta’s increased investment has generated a positive response in the sector. At the same time, Amazon and Google’s rising spending caused their shares to fall. The value of the former fell by 5% and that of the latter by 8%. However, the companies have no plans to change their strategy. They are confident in the huge potential of artificial intelligence. The publication of the Chinese DeepSeek model only pushes the IT giants to act quickly to maintain their leadership.