Since ChatGPT’s release in November 2022, companies have been in a frenzy to inject artificial intelligence into their products and services. But things haven’t turned out as their rosy talk might have led us (or their investors) to believe.
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Developing and staying ahead of the curve on AI isn’t cheap. In fact, it’s very expensive, even by big tech standards. But aside from recent reports of companies losing billions in the chase, none of them have actually managed to properly monetize AI. And now, things are about to reach a tipping point. With all the promises being made to users about AI, are they worth the billions being spent on it?
Investments in AI are among the largest capital injections into a single technology in recent history.
Microsoft reportedly spent $14 billion in the most recent quarter alone. Other big tech companies are no different. Google plans to spend more than $12 billion per quarter this year, while Meta has revised its capital spending forecasts for this year by $10 billion.
