In the latest developments within the AI sector, major technology companies are planning substantial increases in their AI investment. Microsoft, Meta, and Google have released their quarterly earnings reports, while Amazon is expected to announce its own results soon. These companies have indicated a strong focus on boosting spending on AI infrastructure, including NVIDIA chips and data centers.
Meta has projected that capital expenditures will continue to rise significantly in 2025, driven by its push to enhance infrastructure. The company has adjusted its capital expenditure guidance for 2024, now ranging from $38 billion to $40 billion, an increase from the previous $37 billion to $40 billion estimate. CEO Mark Zuckerberg noted during an earnings call that AI investments demand substantial infrastructure. Meta is working on the next version of its Llama model, positioning itself as a leading AI company while using ad revenue to finance these efforts. Zuckerberg stated that AI advancements have led to higher engagement on Facebook and Instagram, with users spending 8% and 6% more time on these platforms, respectively.
Microsoft reported progress in its AI business, expecting to surpass a $10 billion annual revenue run rate this quarter, making it the company’s fastest-growing product category. Microsoft also revealed in a regulatory filing that it has committed $13 billion to OpenAI, excluding an additional $750 million invested in a recent funding round. The filing noted significant financial losses attributed to investments in OpenAI, including a $683 million expense on equity investments for the quarter.
Google celebrated the AI boom for boosting its cloud business and revealed that AI is now responsible for over 25% of new code generation, although all code is reviewed by engineers before use. The company did not provide detailed information on the AI programming process or specific project types suited for AI involvement.
In other AI news, OpenAI has collaborated with Broadcom and TSMC to produce its own AI chips, halting plans to establish its own foundries. This move, prompted by high costs and time constraints, aims to reduce reliance on NVIDIA. Meanwhile, Wall Street firms KKR and Energy Capital Partners announced a $50 billion investment to enhance AI energy infrastructure, with a focus on natural gas. Additionally, a Portland, Oregon pilot program using AI to identify water bill discount recipients inadvertently targeted Columbia Sportswear CEO Tim Boyle, highlighting challenges in accurately predicting consumer financial need.
Lastly, a study by Proof News revealed that leading AI models, including those from Anthropic, Google, OpenAI, Meta, and Mistral, provided incorrect voting information approximately 50% of the time, with a higher error rate for Spanish-language queries.
