It has been an exciting two weeks for artificial intelligence (AI) news. Chances are AI will reach headlines often in the years ahead. After reporting the largest single day loss in the stock market’s history last Monday, Nvidia stocks surged on Tuesday. Google’s parent company Alphabet announced plans to ramp up AI spending. The stock is up 2.32% as of Thursday morning.
At the Google Cloud Next conference, Nvidia CEO Jensen Huang joined Google Cloud CEO Thomas Kurian to confirm an agreement between the two companies. “We’re at an inflection point where accelerated computing and generative AI have come together to speed innovation at an unprecedented pace,” Huang said. “Our expanded collaboration with Google Cloud will help developers accelerate their work with infrastructure, software and services that supercharge energy efficiency and reduce costs.”
Alphabet CFO Anat Ashkenazi shared on Tuesday that it plans to spend as much as $75 billion this year. Most of the money designated to “go towards our technical infrastructure, which includes servers and data centers.” They believe the investment is necessary to keep up with the demands of AI. Google Cloud customers use more than eight times computing capacity than they did just 18 months ago.
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The announcement follows similar planned spending increases shared by Meta and Microsoft. Both companies committed to billions of dollars in spending for AI infrastructure. Amazon also shared their spending report on Thursday, planning a $100 billion capitol expenditure for 2025. The $83 bilion increase in spending compared to last year is almost exclusively related to AI developments. As companies continue to partner with Nvidia for their chips neeed, the future looks positive for the Nvidia and other companies like it. Broadcom, Taiwan Semiconductor Manufacturing Company, Super Micro Computer, and Micron Technology all gained in the stock market after Alphabet’s announcement. The announcement confirms expectations that AI is only going to continue in prominence and essentialness. Alphabet’s partnership commitment with Nvidia also confirms the company’s prominence in chip development. It is not difficult to believe that 2025 will prove an interesting year in AI development. It will likely continue to prove interesting for years to come.