Deepseek threat? Big techs do not slow down. They plan gigantic investments in AI

Luc Williams

Big Techów astronomical investment expenditure

In the fourth quarter of 2024, Marek Zuckerberg has the expectations of analysts in terms of revenues and profits. She also showed a record Capex – in the period mentioned above, she spent $ 14.8 billion for this purpose, and in the whole last year $ 39.2 billion. In 2025, he intends to spend $ 60-65 billion on astronomical investments. The lion’s share of this amount will be purchased for the development of infrastructure (i.e. mainly Nvidia GPU). If the plans are implemented, it will mean an increase of 130 percent. in just two years.

Microsoft and Amazon have already announced their own investment plans for the current year. The first company intends to spend $ 80 billion for the development of data centers, and Amazon can exceed the planned $ 75 billion. Morgan Stanley’s forecasts show that the total Big Techów expenditure on investments this year is to strongly exceed $ 300 billion.

Do investments in LLM make sense?

The meta realizes a very interesting strategy. He invests a lot in his own language models called Lama, which, however, are available as opposed to competitive (for example, ChatgPT or Claude) in the open-source model. Does it make sense?

Mark Zuckerberg CEO believes that this will contribute to the pace of development of large language models (LLM) in general, and this will be beneficial for the company. The finish line is implemented by AI tools into its own products, using primarily the impact of new technology on the effectiveness of advertising or the involvement of Facebook or Instagram users, without focusing on the revenues from the sale of subscription to the use of LLM. As the financial results of OPENAI show, this is still not a very profitable business.

Examples of Deepseek and the finish line call into question the OPENAI business model. However, the last and Softbank investment in a company managed by Altman itself may suggest that some of the large capital still believes in the business potential of generative artificial intelligence.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.