Motley Fool Money Big Tech's AI Spending Spree
22 snips
Nov 1, 2024 
Bill Mann, a senior analyst at Motley Fool, and Matt Argersinger, also an analyst, dive into the staggering $200B AI spending by Amazon, Alphabet, and Microsoft and what it means for cloud growth. They discuss Apple's unique AI stance and the impressive first profit of Reddit. David Gardner, co-founder of The Motley Fool, offers investors a calming perspective ahead of the 2024 elections while Bill and Matt analyze two noteworthy stocks, eBay and Super Micro Computer, providing valuable insights into their future potential.
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Big Tech's AI Gamble
- Big tech companies are projected to spend over $200 billion on AI in 2024, a massive investment in a still-developing technology.
- This spending spree reflects a determination to lead in AI, regardless of the ultimate outcome, mirroring Amazon's past spending patterns.
Amazon's Uncertain AI Payoff
- Amazon's $75 billion AI investment in 2024, with no plans to slow down, needs to yield significant returns.
- Unlike investments in warehouses or cloud infrastructure, the connection between this spending and future profits is less clear.
Google's AI Triumph
- Google's cloud revenue increased by 35% year over year, reaching $11.4 billion.
- Despite earlier concerns about AI disrupting its search business, Google's AI investments seem to be paying off.
