Source: Wall Street See
Technology giants would rather over-invest than invest too little, because in the technology industry, falling behind means having nothing at all.
In the fierce competition in the field of ai, $Meta Platforms (META.US)$And.$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$Executives of the company recently admitted that they may have spent too much on AI infrastructure. However, they also emphasized that the risk of underinvestment is far greater than that of overinvestment.
The necessity of investing in AI.
Mark Zuckerberg, CEO of Meta, pointed out in a podcast this week that in order to ensure that Meta maintains its leading position in the field of AI, the company has spent billions of dollars purchasing Nvidia GPUs to develop and train advanced AI models. Nevertheless, he also acknowledged that the hype surrounding AI may lead to overinvestment. $NVIDIA (NVDA.US)$In addition to Meta and Google, other companies such as Nvidia have bought large numbers of GPUs, all publicly stating that AI investment is a core priority for this year and the foreseeable future.
Because the consequences of falling behind mean that you will be in a disadvantageous position in the most important technologies for the next 10 to 15 years.
Sundar Pichai, CEO of Google, expressed a similar view this week.
During Google's earnings call on Tuesday, Sundar Pichai was asked when Google's $12 billion quarterly investment in AI would pay off. He also admitted that artificial intelligence products need time to mature and become more useful.
AI is expensive, but the risk of underinvestment is greater. Google may have invested too much in AI infrastructure, including purchasing NVIDIA GPUs. Even if the AI boom slows down, the data centers and computer chips the company has purchased can be used for other purposes. For us, the risk of underinvestment is far greater than the risk of overinvestment.
Competition and market pressure brought by AI make tech giants unable to stop even for a moment.
Nvidia$Microsoft (MSFT.US)$,$Amazon (AMZN.US)$,$Oracle (ORCL.US)$And.$Tesla (TSLA.US)$and other companies have also purchased large numbers of Nvidia GPUs, all publicly stating that AI investment is a core priority for this year and the foreseeable future.
David Cahn, a partner at Sequoia Capital, pointed out in a blog post last week that the tech giants' crazy spending on AI is a result of dynamic competition, consistent with game theory's dynamic equilibrium, and has formed a "cycle of competitive escalation."
Tech giants believe that artificial intelligence is both a threat and an opportunity, and they do not have the luxury to sit back and watch how the technology develops. They must take action now.
Editor / jayden