Microsoft And Meta’s AI Spending Train Continues Full Steam Ahead
Big Tech’s AI spending shows no signs of slowing, as Microsoft and Meta burn through $90B+ this year alone. Q3 results revealed that Microsoft has nearly tripled its typical capital expenditure ratio, while Meta plans to “continue investing significantly” in artificial intelligence despite Wall Street’s concerns. Still, they insist that these massive bets are already showing signs of success.
- To train Llama, Meta’s costly buildout includes 100K of Nvidia’s $30K H100 chips — which Zuckerberg notes is the largest AI cluster reported.
- Microsoft revealed its OpenAI partnership has commanded $13.75B as the tech goliath spent $20B on capital expenditures throughout Q3 — nearly doubling from last year.
Build it, and they will come? Amidst the heavy spending, Microsoft’s AI products, like data centers, OpenAI subscriptions, and GitHub Copilot, are already tracking toward $10B in annual revenue — their fastest business to reach this milestone. Meanwhile, Meta’s AI-powered ad improvements are driving 7% higher conversion rates for advertising clients. With both giants doubling down on infrastructure for 2025, the AI spending train isn’t just running full steam — it’s laying down entirely new tracks.
