Tech Giants are now pushing the boom in AI investing with Microsoft Alphabet and Meta all outlining plans to spend tens of billions a quarter to develop AI products.

Just how much should we be expecting from Amazon?

Deja Bosa is looking at that ahead of earnings tonight for today's tech check.

Hey, D.

Hey, good morning, Carl.

So the monetization of AI, we know that's still not clear, but the costs are increasingly clear,

and they are steep putting us in a cloud

cappex super cycle. Take a look at this chart. It shows cap-ex spending and

forecasts among the biggest players ex-Amazon, which reports tonight.

For 2024, Spend was expected to grow 26% collectively.

That's the orange part of the line you see on your screen.

But now that has been revised up to 44% growth, the yellow line,

getting closer to the last super cycle around 2018.

Now back then, the Cloud Wars took place around pricing and specialized services.

Today it is around what Jensen Wong calls the AI computing ramp.

That servers and GPUs.

Everything needed to scale the technical infrastructure

needed to meet growing demand for AI products and power any

number of large language models that the hyperscalers are offering. Now put in

absolute terms the number is staggering. Microsoft, Google, Meta, Amazon, Apple,

they could be spending north of $200 billion in Capex

this year, according to Goldman Sachs.

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