As Big Tech Ramps Up AI Spending, Investors Worry Whether AI Costs Will Pay Off [Video]

As big technology companies including Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) boost capital expenditures on artificial intelligence (AI), some investors and experts have raised concerns about whether potential payoffs from AI will be worth the price.

However, AI optimists say the big capital expenditures are likely to pay off—and even they don’t, they’ll amount to a mere blip for the biggest tech players.

Goldman Sachs analysts project that big tech companies are set to collectively spend over $1 trillion on artificial intelligence over the next five years.

Capital Group analysts forecast capital expenditures spending from tech giants Microsoft, Alphabet, Meta, and Amazon totaling $189 billion in 2024, making up more than a fifth (21%) of total capital expenditures among companies in the S&P 500 Index.

Microsoft, Alphabet, Meta, and Amazonhave all told investors they expect increased spending on AI infrastructure, specifically data centers, to …