小蓝视频

Happy Halloween from my desk in New York. Microsoft and Meta are intensifying capital expenditures to develop AI data centers, driven by surging demand. This week, Microsoft disclosed a significant increase in spending, reaching $20 billion in just the first fiscal quarter. In an earnings call, Meta CEO Mark Zuckerberg stated, "We're going to continue investing significantly in this." Despite these companies surpassing profit and revenue targets, their stocks (including Amazon) witnessed declines in premarket trading; Meta and Microsoft both fell by 4% and Amazon dropped 1.4%.

Financial analysts (and investors) don't seem to understand (or care) that it's going to cost tens of billions of dollars to build out the infrastructure required to win in AI, but the trend is clear: the AI elite have the money, and they are going to invest in the future.

What happens on the other side of this unprecedented spending spree? It depends on who you ask. The goal for some of the tech giants is to build AI systems capable of artificial general intelligence (AGI). While there is no agreed-upon definition of AGI, one popular idea is human-level intelligence (or beyond). Another (less lofty) definition is that AGI will be an AI tech stack of reasoning engines and agents that can accomplish goals (as opposed to simple tasks). However you define AGI (and your definition is as good as anyone else's), it's the next level and there is a big money race to get there.

Who will win? We will. In the end, the big cloud computing companies will incorporate AI into their respective cloud offerings and all of us will enjoy the benefits. That said, there is a huge dark side to all of this… but let's leave that for another day.

As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s

P.S. CES^© is just around the corner (Las Vegas, January 7-10, 2025). Are you going? If you are, our executive briefings and floor tours are the best way to experience the show. .