Meta, Amazon, Alphabet, and Microsoft are aiming to invest a total of $320 billion in artificial intelligence technologies throughout the year 2025. This expenditure plan of around $320 billion by Meta, Amazon, Alphabet, and Microsoft accelerates their massive investments in “data center infrastructures” and “artificial intelligence projects,” while US technology giants like Apple, Tesla, and Nvidia are also joining this competitive race. The launch of ChatGPT in 2022, the training of Apple Intelligence models on Google Cloud, Tesla’s development of a supercomputer named “Cortex” at its Texas facility, and advancements in humanoid robotic projects overshadowed the $230 billion mark in 2024. How will the global outcome of the tech companies’ 2025 artificial intelligence capital move look like?

Tech giants spent billions of dollars last year to keep up with the relentless demand in artificial intelligence. According to CNBC, Meta, Amazon, Alphabet, and Microsoft are planning to spend up to $320 billion on artificial intelligence technologies and data center infrastructures by 2025. This amount was extracted from statements made by company CEOs during the beginning of the year and in the past two weeks’ earnings calls, indicating a significant increase from the total capital expenditures (Capex) of $230 billion in 2024. Technology firms have already invested billions in artificial intelligence projects since ChatGPT’s release in 2022. As part of the competitive race, they are equipping data centers with plenty of Nvidia graphics processing units (GPUs) and striving to advance artificial intelligence models. A recently emerged open-source artificial intelligence tool called DeepSeek in China has practically shocked the sector. It is estimated that developing this tool cost only a small fraction of what some US competitors spend on similar projects. These developments, along with the concerns they spawned, triggered a sales slump in the markets last week. As a result, artificial intelligence chip manufacturers Nvidia and Broadcom lost a total of $800 billion in market value in a single day. This situation led US technology company CEOs to face questions about the necessity of their massive spending plans. Investment Plans of the Big Four Companies:

Amazon

Among the big four tech companies, Amazon announced the largest investment plan. CEO Andy Jassy stated during the company’s earnings call on Thursday that they aim to invest over $100 billion by 2025. This amount is significantly higher than the $83 billion spent by Amazon in 2024. Jassy continued by mentioning that a large portion of the investment will go to Amazon Web Services (AWS) unit’s artificial intelligence projects and that it represents “a once-in-a-lifetime business opportunity.” Jassy further stated, “I think that both our company, our customers, and our shareholders will be pleased with our evaluation of this capital investment and business opportunity in the medium to long term.”

Microsoft

Microsoft announced in January that it would allocate $80 billion towards creating artificial intelligence-focused data centers in the 2025 fiscal year. Company President Brad Smith said that over half of this expenditure is planned to take place in the US. (Microsoft’s fiscal year ends in June.)

Alphabet (Google)

Alphabet, the parent company of Google, is aiming to make $75 billion in capital expenditures by 2025. An estimated $16 to $18 billion of this is expected to occur in the first quarter. Alphabet’s CFO Anat Ashkenazi indicated during Tuesday’s earnings call that most of the expenditure would be allocated to “technical infrastructure primarily for servers, followed by data centers and network equipment.”

Meta (Facebook)

Meta CEO Mark Zuckerberg set the budget for the 2025 artificial intelligence capital expenditures of the company at $60 to $65 billion in January. Zuckerberg described 2025 as a “defining year for artificial intelligence” and emphasized that with this investment, they aim to “unlock a historic innovation and strengthen the leadership of American technology.” These statements were also mentioned in Zuckerberg’s Facebook post.

Other Giants: Apple, Tesla, Nvidia

Apple

The other three of the largest “Magnificent 7” technology companies are Apple, Tesla, and Nvidia. The company usually secures the server power required for artificial intelligence training infrastructure by leasing it from cloud service providers rather than in its own data centers. It is known that Apple’s developed Apple Intelligence models, for example, are trained on Google Cloud infrastructure. Apple also leases capacity from AWS and Azure cloud platforms.

Tesla

In its earnings report released at the end of January, Tesla revealed that around $5 billion in capital expenditures was spent on artificial intelligence in 2024 (a total of $11.34 billion). The company expects the artificial intelligence expenditures for 2025 to remain at approximately the same level as 2024. Tesla is building an AI 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 will come in the later days of February. The capital expenditure figures of Nvidia will present a quite different picture from other companies since Nvidia is not buying but developing and supplying artificial intelligence technology.