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Amazon and Microsoft Set to Spend $400 Billion in Intensifying AI Race
- By The Financial District
- 39 minutes ago
- 1 min read
Amazon and Microsoft are expected to spend a combined $400 billion this year expanding artificial intelligence infrastructure, intensifying their long-running battle for cloud computing dominance, Amanda Gerut reported for Fortune Tech.
![Amazon and Microsoft continue their multibillion-dollar race to expand AI data center infrastructure. [Photo: Amazon]](https://static.wixstatic.com/media/1c4fd3_c77ec0d5bbd84facba47372f51e2c626~mv2.jpg/v1/fill/w_980,h_515,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/1c4fd3_c77ec0d5bbd84facba47372f51e2c626~mv2.jpg)
Each company is projected to invest approximately $200 billion in building data centers to meet surging demand for AI services while fending off competition from rivals such as Google.
The cloud giants have also forged partnerships with leading AI developers, creating a complex network of alliances aimed at strengthening their positions in the rapidly evolving AI market.
Investors will closely monitor the companies' quarterly earnings this week, with Microsoft scheduled to report on Wednesday and Amazon on Thursday. Analysts say the results could provide fresh insight into whether the unprecedented spending on AI infrastructure is generating sufficient returns.
