Source: Finance Association
① An “arms race” is quietly unfolding; ② As major US technology companies continue to increase their investment in the field of artificial intelligence, more and more giants have begun to look beyond the US; ③ According to industry statistics, the total investment of Microsoft and Amazon in global artificial intelligence-related projects and data center projects so far during the year has exceeded 40 billion US dollars.
As major US technology companies continue to increase their investment in the field of artificial intelligence, more and more giants have begun to look beyond the US and invest billions of dollars to build artificial intelligence infrastructure. An “arms race” is quietly unfolding.
According to industry statistics, up to now during the year,$Microsoft (MSFT.US)$und$Amazon (AMZN.US)$Total investment in global artificial intelligence-related projects and data center projects has exceeded 40 billion US dollars.
Wedbush analyst Daniel Ives said in an interview that overall, big tech companies are seeking to “expand their wings” into the international market. This is an “arms race” for artificial intelligence, and Microsoft, Amazon, and other tech companies are making efforts to seize the opportunity, driven by this wave of spending.
DA Davidson analyst Gil Luria also predicts that these companies will spend more than 100 billion US dollars on AI infrastructure this year, and technology companies will continue to invest heavily in AI infrastructure over the next 10 years, and the total annual expenditure in this field is expected to eventually reach trillion dollars.
Currently, Microsoft and Amazon are unquestionably in a leading position in this arms race. Both have large three-digit data centers around the world to meet the growing business demands of customers.
Microsoft has planned a global investment of more than $16 billion over the next few years, spread across France, Germany, Japan, Malaysia, Spain, and Indonesia.
Amazon, on the other hand, plans to invest 15 billion US dollars to build infrastructure in Japan, 9 billion US dollars in Singapore, 5 billion US dollars in Mexico, and 1.3 billion US dollars in France.
Luria said, “As the rest of the world increasingly migrates to the cloud, there is a greater need to establish these data centers in regions where this transformation is taking place. As local facilities take faster processing times, plus data privacy and security concerns, businesses need those that are full$NVIDIA (NVDA.US)$GPU data centers are built locally.”
It is worth mentioning that compared to the global layout ambitions of Microsoft and Amazon, currently$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$und$Meta Platforms (META.US)$It also basically limited most of its AI and data center related investments to the US.
However, Wedbush's Ives anticipates that in the future, they will surely follow the example of Microsoft and Amazon and actively expand overseas.
Luria also pointed out that for these companies, data center expansion will be “a natural part of business development.”
editor/tolk