April 10 - Reuters reports.GoogleParent company Alphabet Inc. on Wednesday reiterated plans to spend about $75 billion (note: about 551.945 billion yuan at current exchange rates) this year to expand data centers, as it continues to bet on generative AI despite uncertain returns and the potential for upward cost pressures from a global trade war.
Alphabet CEO Sundar Pichai told an annual meeting of Google's cloud computing unit that the investment would be used toProcurement of required chips and serversthat strengthens the company's core business (e.g., search) while driving the development of AI services, such as its Gemini model.
"The opportunity for AI is huge," he said, adding that the investments will also benefit the company's enterprise customers. "We are very focused on bringing technological advances to consumers and businesses."
Alphabet has unveiled a $75 billion (about Rs. 551,945 crore at the current exchange rate) investment program in February, targetingExceeded Wall Street analysts' expectations 29%.
American tech giants areTens of billions of dollars invested in building AI infrastructureBut investors grew anxious about these huge investments and demanded thatBetter Returns.
Noel Walsh, Microsoft's president of cloud computing and innovation, said in a post on Collingwood on Tuesday that "Microsoft is investing this year inOver $80 billion (approximately RMB 588,742 million at current exchange rates)Continuing to build out data center infrastructure, these investments are being made based on both short-term and long-term needs."
Meta Platform said it expects to invest this yearUp to $65 billion (approximately RMB 478,353 million at current exchange rates)for expanding its AI infrastructure.
Since OpenAI launched ChatGPT in 2022, there has been a surge in investment in AI. Major companies are vying for dominance in generative AI technology in an effort to further diversify their revenue streams and improve the competitiveness of their products.