Jul 31, 2024 02:33 PM IST

Global investments in artificial intelligence (AI) are estimated to hit $1 trillion in the coming years, with tech giants such as Google, Microsoft, Apple, and Amazon spending big money on their own technology as well as on external ventures, Business Insider wrote.

How much has big tech invested into AI?

Google

Google has invested $3 billion to build and expand its data centers, and has spent $60 billion to train AI on Reddit posts, according to the report.

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The search engine giant has also however, released multiple products over the last few months, but had to roll them back due to inaccuracies.

xAI

Grok, the chatbot of Elon Musk’s xAI will be training on 100,000 Nvidia H100 GPUs, which are estimated to cost between $30,000 and $40,000 each, which means xAI would be spending between $3 and $4 billion on AI chips.

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Nvidia’s H100 GPUs can handle data processing for large language models, making the chips a key component for developing AI.

OpenAI

OpenAI may spend as much as $8.5 billion this year, according to The Information.

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This could include $4 billion to rent server capacity from Microsoft, $3 billion for training AI models, and $1.5 million on labor costs, according to the report.

Meta

Meta CEO Mark Zuckerberg plans to purchase 350,000 Nvidia GPUs by the end of 2024, which would bring Meta’s GPU collection to roughly 600,000.

The company’s costs could hit $50 billion, fueled by AI spending, according to a Quartz report which cited a JPMorgan analyst.

Apple

Apple spent about $100 billion over the last five years on research and development, according to a MarketWatch report, which cited Apple CFO Luca Maestri as saying in the company’s first quarter earnings call. However, the amount spent on AI specifically was not mentioned.

Microsoft

Microsoft plans to obtain 1.8 million AI chips by the end of the year to rap up its data center capacity, according to the Business Insider report which cited leaked company documents.

The tech giant’s CFO Amy Hood said during the third quarter earnings call in April that the company’s capital expenditures including AI and cloud services would increase “materially.”

Amazon

Amazon is working on Metis, a chatbot to compete with OpenAI’s ChatGPT and plans to spend around $150 billion on data centers in the upcoming 15 years, with $80 million to be spent on Amazon’s second AWS Generative AI Accelerator program, according to the report.

The company is also planning to invest $230 million into generative AI startups.

How much has big tech invested into startups?

Microsoft invested $13 billion in OpenAI while OpenAI itself has invested into startups like FigureAI and 1X Technologies.

Amazon pumped $4 billion and Google invested $2 billion into Anthropic, and OpenAI CEO Sam Altman invested into AI health startup, Thrive AI Health.