Big tech companies such as Meta Platforms, Alphabet and Microsoft have become more careful about spending over the past few months, with each laying off thousands of people. But all three are ramping up spending on servers and other technical infrastructure to gain the capacity to build and sell more artificial intelligence tools.
The spending reflects the gold rush mentality that has taken hold in tech as companies race to find ways of incorporating generative AI tools—which create humanlike writing, complex images and videos, and computer code—into their products and services. But such AI software is built on large-language models that require heavy amounts of computing power using expensive specialized chips.
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