American tech companies spend $billions to become AI utilities

“Tesla will spend around $10B this year in combined training and inference AI, the latter being primarily in the car. Any company not spending at this level, and doing so efficiently, cannot compete.” – Elon Musk

As big American tech companies spend $billions to become AI utilities (as in waterboard, electricity authority, etc), the rest of the world (outside China will be siddon look). Yes, it is beyond brilliance, you need to have truckloads of money these days to build the foundations of the empires of the future. Facebook’s Meta is going for $35 billion – $40 billion spend.

Money answereth breakthroughs, building moats around castles of profits. It is beyond knowledge; capital is king! When that is the case, many great things happen. Yes, new products are created as Amazon has now become an ad company:

Amazon’s cloud and advertising businesses boosted its bottom line, helping the e-commerce giant’s first-quarter earnings exceed analysts’ forecasts. The company reported a better-than-expected 24% jump in ad sales from a year earlier and 17% sales growth in AWS, its cloud computing arm. Looking ahead, Amazon tempered its second-quarter outlook, expecting 7% to 11% growth and net sales approaching $149 billion, just shy of analysts’ expectations of $150.1 billion. Still, revenue from cloud computing — the strongest in a year — signals recovery in the giant’s prospects for growth on renewed business spending and the AI boom.

“Tesla will spend around $10B this year in combined training and inference AI, the latter being primarily in the car. Any company not spending at this level, and doing so efficiently, cannot compete.” – Elon Musk

As big American tech companies spend $billions to become AI… pic.twitter.com/YJNrjYISM3

— Ndubuisi Ekekwe (@ndekekwe) May 1, 2024

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