Investment or trillions of dollars in AI infrastructure intensifies global competition

2024-05-28

According to foreign media reports, multiple technology giants are showing an increasing trend in their layout in the field of artificial intelligence (AI), maintaining industry competitiveness through expanding overseas investment, conducting equipment research and development on their own, and maintaining large-scale mergers and acquisitions. According to incomplete statistics, Microsoft and Amazon have invested over $40 billion in global AI related and data center projects since the beginning of this year. According to Wedbush analyst Lewis, large technology companies are "flying high" towards the international market. He described this as an "arms race" in the AI market, with multiple companies such as Microsoft and Amazon investing heavily, hoping to accurately predict the future and seize the opportunity. Institutional DA Davidson analyst Lu Ruiya predicts that these companies will spend over $100 billion on AI infrastructure this year, and the scale of future spending will continue to increase with increasing demand. Levi's predicts that technology companies will continue to invest heavily in AI infrastructure. In the next 10 years, the expenditure in this field will reach $1 trillion, and everyone is working hard. Public information shows that Microsoft plans to invest over $16 billion in the next few years, distributed in France, Germany, Japan, Malaysia, Spain, and Indonesia. At the same time, Amazon plans to invest $15 billion in infrastructure in Japan, and $9 billion, $5 billion, and $1.3 billion respectively in Singapore, Mexico, and France. Luria said, "As more and more parts of the world migrate to the cloud, it is even more necessary to establish these data centers in the regions where this transformation is taking place." Meanwhile, Google, Apple, and Technology companies such as Meta are also developing and producing their own branded chips to break free from dependence on industry leaders such as Nvidia in the development of artificial intelligence. Due to the increasing overall demand for generative AI in the market, and the desire of new and startups to integrate this feature into their businesses, AI companies of all sizes are also exploring and building smaller models. These models can effectively accomplish specific tasks, but do not require as powerful computing power as Nvidia chips. Large investment institutions also maintain a high enthusiasm for AI. The Financial Times reported that SoftBank is preparing to invest nearly $9 billion annually in the AI field in order to maintain competitiveness in the technology sector. According to reports, SoftBank founder Sun Zhengyi has always believed in the power of AI and emphasized the need to reshape the company. His deal with British chip company Anmou is an important step for the company to become a leading AI technology company. Softbank holds 90% of the shares of Anmou. The Nihon Keizai Shimbun reported that once Anmou starts mass production of AI chips, this business may be separated from Anmou and operated directly by Softbank. Since Anmou went public last year, its valuation has skyrocketed. (Lai Xin She)

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