Big Tech's Massive AI Investments: A Closer Look at Industry Giants' Spending

Here's how much Big Tech giants like Google, Microsoft, Apple, and Amazon spent on AI

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. Also Read: Microsoft suffers new outage, says cyberattack triggered it: What we know so far The search engine giant has also however, released multiple products over the last few months, but had to roll them back due to inaccuracies. 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. Also Read: Intel plans to cut thousands of jobs. Will layoffs take place in India as well? Nvidia's H100 GPUs can handle data processing for large language models, making the chips a key component for developing AI. OpenAI may spend as much as $8.5 billion this year, according to The Information. Also Read: Akasa Air's 'Asia tourist hotspots' plan to compete with IndiGo, Air India 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 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 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 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 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. 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.

Here's a closer look at how much Big Tech is spending on AI | Business Insider India

Elon Musk (top left), Jensen Huang (top center), Sam Altman (top right), Mark Zuckerberg (bottom left), Sundar Pichai (bottom right).Kent Nishimura/Ethan Miller/Justin Sullivan/Anna Moneymaker/Jeff Bottari/Getty As the AI race heats up, Big Tech companies are both spending big on their own technology and strategically investing in external AI ventures. Microsoft has invested $13 billion in OpenAI, for example. Amazon invested $4 billion in its partnership with Anthropic, whose chatbot Claude rivals ChatGPT. Google, which also competes with OpenAI, also invested $2 billion in Anthropic. Meantime, OpenAI itself has invested in its fair share of startups, including in humanoid robot companies FigureAI and 1X Technologies. OpenAI CEO Sam Altman has also put money into several AI health startups, like Thrive AI Health. And OpenAI has a notable partnership with Apple to bring ChatGPT to some Apple products, though no financial terms have been disclosed about the deal. It's no secret that companies are spending on AI -- in fact, investments are estimated to hit $1 trillion in the coming years. But while Big Tech has publicized their investments into other companies, they've remained opaque on what they're spending on scaling their own AI offerings, from buying chips to hiring experts to building data centers. Here's a list of the Big Tech companies and what we know about their AI investments.

Here's a closer look at how much Big Tech is spending on AI

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Meantime, OpenAI itself has invested in its fair share of startups, including in humanoid robot companies FigureAI and 1X Technologies. OpenAI CEO Sam Altman has also put money into several AI health startups, like Thrive AI Health. And OpenAI has a notable partnership with Apple to bring ChatGPT to some Apple products, though no financial terms have been disclosed about the deal. It's no secret that companies are spending on AI -- in fact, investments are estimated to hit $1 trillion in the coming years. But while Big Tech has publicized their investments into other companies, they've remained opaque on what they're spending on scaling their own AI offerings, from buying chips to hiring experts to building data centers. Here's a list of the Big Tech companies and what we know about their AI investments.