How much are big tech companies spending on AI?

Google has positioned itself as an AI-first company and has released a number of services over the past few months, but has had to roll back some due to inaccuracies.

But during the company's second-quarter earnings call last week, executives remained fairly vague about AI spending.

Company executives have not shared hard numbers about AI investments, but continue to stress that its AI ambitions will generate long-term benefits. What we know so far is that Google is spending $3 billion to build and expand its data centers, Training the AI Regarding the Reddit post.

According to The Information, OpenAI's operating costs could reach $8.5 billion this year, which may be more than the startup can afford and raises concerns about the company's profitability given that competitors are offering free versions of their chatbots.

According to the report, costs include about $4 billion to rent server space from Microsoft, $3 billion to train AI models with new data, and $1.5 million in personnel costs.

Meta CEO Mark Zuckerberg said he plans to buy 350,000 Nvidia GPUs by the end of 2024, bringing Meta's GPU collection to about 600,000. Analysts estimate that the giant could have spent around $18 billion by the end of 2024.

According to a report from Quartz, JPMorgan analysts said AI-related spending could cost the company $50 billion by 2025.

The tech giant is expected to provide more details about its AI spending when it reports quarterly earnings on Wednesday.

According to MarketWatch, Apple CFO Luca Maestri said during the company's first-quarter earnings call that the company has spent about $100 billion on research and development over the past five years, but did not disclose how much of that was spent on AI. Maestri said the company will continue to invest in some areas and collaborate with third parties in others.

“We are committed to innovation in everything we do and have been for many years,” the CFO said, according to the report.

Leaked documents earlier this year revealed the company's acquisition plans. 1.8 million AI chips By the end of the year Data Centres capacity.

Microsoft said it would continue to invest in AI and cloud services during its third-quarter earnings call in April, with CFO Amy Hood saying capital expenditures would increase “significantly.”

The company plans to provide more details about its AI spending during its fourth-quarter earnings call later today.

Amazon is They're working on developing an AI chatbot that will compete directly with OpenAI ChatGPT, Phoned Metis,and Proprietary AI chip to compete with NVIDIAHowever, success was limited.

Meanwhile, the company plans to spend about $150 billion on data centers over the next 15 years. Bloomberg report.

Amazon also plans to invest up to $230 million in startups developing generative AI-powered applications.

About $80 million of the investment will go towards Amazon's second AWS Generative AI Accelerator program, which will position Amazon as the go-to cloud service for startups building generative AI products.

Much of the new investment will come in the form of AWS infrastructure compute credits, which cannot be transferred to other cloud service providers such as Google or Microsoft.

Elon Musk said earlier this month that the latest version of xAI's chatbot Grok would be trained on 100,000 H100s. Nvidia's H100 GPUs help process data for large language models, making the chip a key component in scaling AI.

With GPUs estimated to cost between $30,000 and $40,000 each, that means xAI is spending between $3 billion and $4 billion on AI chips.

It's worth noting that it's not clear if Musk's company has purchased these chips. It is possible to rent GPU computing power from cloud service providers, and The Information report In May, it was reported that xAI was in talks with Oracle about investing $10 billion in renting cloud servers.