Meta, Amazon, Alphabet, and Microsoft aim to invest a total of $320 billion in AI technologies throughout 2025. These companies are accelerating their massive investments in “data center infrastructures” and “AI projects” with around $320 billion in spending, while American tech giants like Apple, Tesla, and Nvidia are entering this “race of competition.” Tech companies are rapidly expanding their data centers and AI infrastructures to stay ahead in the competition. Amazon leads in aggressive spending with $100 billion. The release of ChatGPT in 2022, Apple’s Intelligence models being trained on Google Cloud, Tesla developing a supercomputer named “Cortex” at its Texas facility, and breakthroughs in humanoid robotic projects overshadow the $230 billion level forecast for 2024. How will the worldwide AI investment moves by tech companies in 2025 turn out? The AI Race is Intensifying Last year, tech giants spent billions to meet the unstoppable demand for AI. Meta, Amazon, Alphabet, and Microsoft are planning to spend up to $320 billion on AI technologies and data center infrastructures in 2025, according to CNBC. This amount represents a significant increase from the total capital expenditure (Capex) of $230 billion in 2024, as derived from the statements made by the company’s CEOs at the beginning of the year and in the last two weeks. Tech companies have already invested billions in AI projects since the launch of ChatGPT in 2022. In the race of competition, they’re equipping data centers with plenty of Nvidia graphics processing units (GPUs) and trying to advance AI models. The open-source AI tool named DeepSeek recently emerged in China, causing a shockwave in the industry. The development of this tool reportedly cost only a small fraction compared to what some American competitors spent on similar projects. Concerns arising from these developments triggered a sales wave in the markets last week. As a result, Nvidia and Broadcom, chip manufacturers for AI, collectively lost $800 billion in value in just one day. This led American tech company CEOs to face questions about the necessity of their colossal spending plans. Investment Plans of the Four Big Companies ** Amazon Amazon, the company that announced the largest spending plan among the four major tech companies. CEO Andy Jassy stated during Thursday’s earnings call that they aim to invest over $100 billion in 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 would go towards the AI projects of Amazon Web Services (AWS) and that it represents “a once-in-a-lifetime business opportunity.” He further stated, “I think that both our company, our customers, and our shareholders will be pleased with this capital investment in AI and the business opportunity in the AI field in the medium and long term.” ** Microsoft Microsoft announced in January that it would allocate $80 billion to create AI-centric data centers for the 2025 fiscal year. Company President Brad Smith mentioned that it’s planned for more than half of this spending to take place in the US. (Microsoft’s fiscal year ends in June.) ** Alphabet (Google) Alphabet, Google’s parent company, is aiming to spend $75 billion in capital expenditures in 2025. Between $16 billion and $18 billion of this is expected to occur in the first quarter. Alphabet’s CFO Anat Ashkenazi stated during Tuesday’s earnings call that a significant portion of the spending would go towards technical infrastructure, mainly for servers, data centers, and network equipment. ** Meta (Facebook) In January, Meta CEO Mark Zuckerberg set the company’s 2025 AI capital expenditure budget at between $60 billion and $65 billion. Zuckerberg described 2025 as a “defining year for AI” and emphasized that with these investments, they aim to “unlock a historic innovation and strengthen American technology leadership.” These statements were also part of Zuckerberg’s own Facebook post. Other Giants: Apple, Tesla, Nvidia Apple The other three of the biggest seven tech companies, known as the ‘Fantastic 7,’ are Apple, Tesla, and Nvidia. The company generally secures the server power needed for AI training infrastructure from cloud service providers rather than in its data centers. For instance, it’s 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 revealed in its earnings report published at the end of January that its AI-related capital expenditures were around $5 billion in 2024 (a total of $11.34 billion). The company expects AI spending in 2025 to remain at about the same level as in 2024. Tesla is building a training supercomputer cluster named “Cortex” at its Texas facility. This infrastructure will be used to train the AI models behind the company’s autonomous driving technology and humanoid robotic projects. Nvidia Nvidia has not yet announced its fourth-quarter results; these results are expected to come later in February. Nvidia’s capital expenditure figures will paint a considerably different picture from other companies, as Nvidia is in a position to develop and supply AI technology, not just to purchase it.