Big Tech to Spend 320 billion USD on AI in 2025
Inspired by: Morris, S. & Uddin, R. (2025). Big Tech lines up over $300bn in AI spending for 2025 . Financial Times. https://www.ft.com/content/634b7ec5-10c3-44d3-ae49-2a5b9ad566fa Block 1 Word Count - 769 Big Tech to Spend 320 billion USD on AI in 2025 Spending from the "Magnificent Seven" dwarves that of the rest of the stock market, and is increasing with Amazon, Meta, Microsoft, and Alphabet forecasting to spend upwards of a combined $320 billion on artificial intelligence (AI) in 2025. From revolutionizing cloud computing to enhancing productivity tools and transforming advertising, AI has potential to unlock new revenue streams and drive efficiency. While large investments into AI are framed as essential for securing long-term competitive advantages, they have sparked questioning from investors. Are these expansive capital expenditures a path to shareholder value creation, or do they risk destroying value in pursuit of an uncertain future? ...