Google, Amazon, and Microsoft are allocating $43 billion to cloud computing to meet AI demand.

The world’s cloud computing giants are reportedly increasing their spending as artificial intelligence (AI) grows.

Cost of capital byGoogle,AmazonAndMicrosoftThe Financial Times (FT) jumped to a total of $42 billion for the three months to September.It has been reportedSunday (November 5). This figure is up 10% from the previous quarter, and analysts predict that cloud spending will increase further in 2024.

As the report points out, executives from the three tech giants recently said large amounts of capital budgets have been earmarked for productive artificial intelligence systems that require large amounts of computing and data power.

CEO of AmazonAndy Jassi It predicts that productive artificial intelligence will generate tens of billions in revenue.

As PYMNTS reported in October, Amazon Web Services revenue rose 12% year-over-year in the most recent quarter. reached 919 million dollars.

Firms have moved more slowly to complete deals in an uncertain economy in 2023, but saw an increase in the speed and volume of deals closed, Jassi said. He added that generative AI allows companies to create agents to perform tasks such as answering questions or automating workflows.

As for Google, PYMNTS wrote last month that the company is reaching the quarter-century mark in a new era of innovation, driven by Generative capabilities of artificial intelligence and the fundamental models that their labs and research teams helped advance.

During the last calls of Alphabets, the CEO of the company Sundar PichaiIt told investors that more than half of all funded AI startups are Google Cloud customers.

He rattled off a few companies’ names to the audience, noting that more than 60 percent of the world’s 1,000 largest enterprises use Google Cloud to support their workflows.

Pichai had mentioned it in the previous quarter70% of artificial intelligence producing unicornsThey used Google Cloud. From the second and third quarters of 2023, Pichai said the number of active, productive AI projects being developed using Alphabet-owned platforms has increased sevenfold.

Google’s Cloud revenue grew 22 percent year-over-year, nearly double the growth rate of the company as a whole.

All three companies are trying to capture a larger share of the cloud market and must remain competitive in AI or they will lose relevance and market share. Jeff PearsonCEO of tech consultancy Slalom told the FT. All of these require a large amount of Capex for equipment such as data centers and servers.

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