Big Tech Ramps Up AI Spending Once More

Google, Meta, Microsoft, and Amazon have sharply increased their AI spending by billions, despite growing concerns of a potential tech bubble. Each company is investing heavily in data centers to meet surging demand for AI computing power. Microsoft spent $35 billion last quarter, Meta plans $70 billion for the year, and Amazon will spend $125 billion. Analysts warn that smaller firms lack similar resources, and the Bank of England cautioned that rising debt could heighten risks if AI underdelivers. Federal Reserve Chair Jerome Powell, however, said today’s AI investments differ from the 1990s dot-com bubble, as major players are funding expansion through profits.