US tech giants are doubling down on massive AI spending despite lingering concerns of a bubble and energy shocks stemming from the Middle East conflict.
Amazon CEO Andy Jassy dismissed concerns about the company’s projected $200 billion in capital expenditure this year — mostly on AI buildout — telling investors in his annual letter, “We’re not going to be conservative.”
And Meta, a top AI infrastructure spender, struck a $21 billion cloud capacity deal with CoreWeave on Thursday; the company plans to put billions toward AI over the next few years.
Big Tech’s spending bet is now being tested, S&P Global said, as the Iran conflict puts pressure on energy costs and global economic growth.
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