When investment on the scale of the current AI boom occurs, it inevitably has to come at the expense of something. All the resources devoted to building data centers and developing AI models would otherwise go to something else. The big picture: This crowding out is smaller than you might expect, Goldman Sachs economists find in a new note. - But it does exist, they say, and takes the form of displacing other tech investment and construction , as well as raising corporate borrowing costs. By the numbers: AI investment will be about $600 billion this year, some 2% of GDP, accounting for 10% of business fixed investment and 15% of equipment investment, economists Jessica Rindels and David Mericle wrote. State of play: The first…
When investment on the scale of the current AI boom occurs, it inevitably has to come at the expense of something. All the resources devoted to building data centers and developing AI models would otherwise go to something else. The big picture: This crowding out is smaller than you might expect, Goldman Sachs economists find in a new note. - But it does exist, they say, and takes the form of displacing other tech investment and construction , as well as raising corporate borrowing costs. By the numbers: AI investment will be about $600 billion this year, some 2% of GDP, accounting for 10% of business fixed investment and 15% of equipment investment, economists Jessica Rindels and David Mericle wrote. State of play: The first…Open
Amazon joined a procession of tech giants that ramped up their spending on artificial intelligence, as its capital expenditures soared 69 percent. Concerns over the industry’s spending are mounting.
Meta CEO Mark Zuckerberg on Thursday laid out an optimistic view of the agentic future , arguing the company's focus on connecting the world will only be strengthened with new AI tools and technologies. Why it matters: His position is framed as a stark contrast to some of Meta's AI competitors, who — according to a video ad posted with Zuckerberg's comments — promote fear and a dystopian vision of the future. - "Some people will have you believe AI will make us less connected, that it's going to leave us behind. We couldn't disagree more. Call us optimists, call us dreamers. Just as we've always done we're betting on people," the ad notes. Zoom in: In a Facebook post, Zuckerberg said "Meta has always believed in giving people the…
Meta CEO Mark Zuckerberg on Thursday laid out an optimistic view of the agentic future , arguing the company's focus on connecting the world will only be strengthened with new AI tools and technologies. Why it matters: His position is framed as a stark contrast to some of Meta's AI competitors, who — according to a video ad posted with Zuckerberg's comments — promote fear and a dystopian vision of the future. - "Some people will have you believe AI will make us less connected, that it's going to leave us behind. We couldn't disagree more. Call us optimists, call us dreamers. Just as we've always done we're betting on people," the ad notes. Zoom in: In a Facebook post, Zuckerberg said "Meta has always believed in giving people the…Open
The company reported a strong holiday quarter on Thursday. But its big spending on things like artificial intelligence and satellites is starting to make investors nervous.
Meta CEO Mark Zuckerberg said 2026 will be the year "AI starts to dramatically change the way that we work," as his company flattens teams and provides AI tools to boost individual productivity. Why it matters: Meta is under pressure to justify its aggressive AI spending as it predicts its capital expenditures could nearly double this year to a whopping $135 billion. - Zuckerberg is betting the returns will show not only in its consumer products and advertising business but also its workforce. Zoom in: Zuckerberg said during the earnings call Wednesday that Meta is investing in "AI-native tooling" to help its employees do more on their own. - "We're starting to see projects that used to require big teams now be accomplished by a…
Meta CEO Mark Zuckerberg said 2026 will be the year "AI starts to dramatically change the way that we work," as his company flattens teams and provides AI tools to boost individual productivity. Why it matters: Meta is under pressure to justify its aggressive AI spending as it predicts its capital expenditures could nearly double this year to a whopping $135 billion. - Zuckerberg is betting the returns will show not only in its consumer products and advertising business but also its workforce. Zoom in: Zuckerberg said during the earnings call Wednesday that Meta is investing in "AI-native tooling" to help its employees do more on their own. - "We're starting to see projects that used to require big teams now be accomplished by a…Open