Meta, Amazon, Alphabet, and Microsoft aim to invest a total of $320 billion in artificial intelligence technologies throughout the year 2025. With an expenditure in the vicinity of $320 billion, these companies accelerate their massive investments in “data center infrastructures” and “artificial intelligence projects,” while U.S. tech giants like Apple, Tesla, and Nvidia also join this “race of competition.” Technology companies are in a race to rapidly expand their data centers and artificial intelligence infrastructures to stay ahead in the competition. Amazon stands out as the company with the most aggressive expenditure plan, totaling $100 billion. The entry of ChatGPT into the market in 2022, the training of Apple’s Intelligence models on Google Cloud, Tesla’s development of a “Cortex” supercomputer at its facility in Texas, and breakthroughs in humanoid robotic projects overshadow the $230 billion level of 2024. How will the global implications of the tech companies’ $300 billion artificial intelligence capital move in 2025 unfold? Artificial Intelligence Competition Heats Up Last year, tech giants spent billions of dollars to keep up with the relentless demand for artificial intelligence. According to CNBC, Meta, Amazon, Alphabet, and Microsoft plan to spend up to $320 billion on artificial intelligence technologies and data center infrastructures by 2025. This amount is extracted from statements made by company CEOs in early and late earnings calls throughout the year and represents a significant increase from the total capital expenditure (Capex) of $230 billion in 2024. Technology companies have already invested billions of dollars in artificial intelligence projects since ChatGPT entered the market in 2022. In the race of competition, they are equipping their data centers with plenty of Nvidia graphics processing units (GPUs) and trying to advance their artificial intelligence models. Recently, an open-source artificial intelligence tool called DeepSeek emerged in China, causing a shockwave in the industry. Developing this tool reportedly cost only a fraction of what some of its U.S. counterparts dedicated to similar projects. Concerns arising from these developments triggered a selling wave in the markets last week. Consequently, artificial intelligence chip manufacturers like Nvidia and Broadcom collectively lost $800 billion in value in a single day. This prompted questions on the necessity of the vast expenditure plans of U.S. tech company CEOs. Investment Plans of the Big Four Amazon Amazon was the company among the big four tech companies that announced the most extensive expenditure plan. CEO Andy Jassy stated during the Thursday earnings call that they aimed to invest over $100 billion in 2025. This amount significantly surpasses Amazon’s $83 billion expenditure in 2024. Jassy continued by mentioning that most of the investment would go towards Amazon Web Services (AWS) unit’s artificial intelligence projects, calling it “a once-in-a-lifetime business opportunity.” He added, “I believe both our company, our customers, and our shareholders will be pleased with our capital investment and the business opportunity in the field of artificial intelligence in the medium and long term.” Microsoft Microsoft announced in January that it would allocate $80 billion for creating artificial intelligence-focused data centers for the fiscal year 2025. Company President Brad Smith stated that more than half of this spending is planned to occur in the U.S. (Microsoft’s fiscal year ends in June). Alphabet (Google) Alphabet, Google’s parent company, aims to make capital expenditures of $75 billion by 2025. It is expected that $16 to $18 billion of this will happen in the first quarter. Alphabet’s CFO Anat Ashkenazi addressed during the Tuesday earnings call that most of the expenses will go to “technical infrastructure, primarily for servers, followed by data centers and network equipment.” Meta (Facebook) Meta CEO Mark Zuckerberg set the company’s 2025 artificial intelligence capital expenditure budget in the range of $60 to $65 billion in January. Describing 2025 as “a defining year for artificial intelligence,” Zuckerberg highlighted their goal with these investments to “unlock a historic innovation and solidify American technology leadership.” These statements were also included in Zuckerberg’s Facebook post. Other Giants: Apple, Tesla, Nvidia Apple The other three of the most prominent “Big Seven” tech companies are Apple, Tesla, and Nvidia. The company usually secures the server power required for artificial intelligence training infrastructure by renting from cloud service providers rather than in its own data centers. For example, it is known that Apple’s developed Apple Intelligence models are trained on Google Cloud infrastructure. Apple also rents capacity from AWS and Azure cloud platforms. Tesla Tesla disclosed in its earnings report released at the end of January that its 2024 capital expenditures on artificial intelligence were around $5 billion (totaling $11.34 billion). The company expects artificial intelligence spending to remain approximately at the same level between 2024 and 2025. Tesla is constructing a training supercomputer cluster named “Cortex” at its Texas facility. This infrastructure will be used to train the artificial intelligence models behind the company’s autonomous driving technology and humanoid robotic projects. Nvidia Nvidia has not yet disclosed its fourth-quarter results; these results are expected to be available later in February. Nvidia’s capital expenditure figures will paint quite a different picture from other companies, as Nvidia is in a position to develop and supply artificial intelligence technology rather than acquire it.