Tech companies spend billions on AI infrastructure to develop advanced AI models. Meta CEO Mark Zuckerberg acknowledged companies may be "overbuilding" and spending more than needed on AI currently. Google CEO Sundar Pichai also said they may be overspending on AI but that the risks of falling behind are greater. Tesla spends hundreds of millions on AI and wants to develop its own superchips due to the high costs and limited availability of Nvidia chips. There are concerns the spending may not be justified by the revenue generated from AI so far. Analysts say that AI capital expenditures are driven more by game theory and fear of missing out than by actual revenue or usage.
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00:00It's Benzinga, and here's what's on the block.
00:02Large tech companies are all spending billions of dollars on AI infrastructure to develop
00:07advanced AI models. Meta CEO Mark Zuckerberg acknowledged companies may be overbuilding
00:12and spending more than needed on AI currently. Google CEO Sundar Pichai also said they may be
00:18overspending on AI, but that the risks of falling behind are greater. Tesla spends
00:23hundreds of millions of dollars on AI and wants to develop its own superchips due to
00:27the high costs and limited availability of Nvidia chips. There are concerns the
00:31spending may not be justified by the revenue generated from AI so far.
00:35Analysts say that AI capital expenditures are driven more by game theory and fear of
00:40missing out than by actual revenue or usage. For all things money, visit Benzinga.com.