AMD CIO Hasmukh Ranjan estimates employee AI token usage could cost companies up to $900 million annually, a hidden expense many CEOs cutting jobs over AI are overlooking. Companies are cutting staff citing AI, while the AI itself incurs significant token costs, sometimes exceeding the cost of human employees.
Amazon has secured a $17.5 billion loan from major financial lenders, including Citigroup and JPMorgan Chase. This comes shortly after a $14 billion Canadian bond sale, totaling $31.5 billion in new financing within 48 hours. The funds are for general corporate purposes, amidst a broader industry trend of companies borrowing heavily to finance AI infrastructure.
While some executives report high AI compute costs, new research indicates businesses are not yet spending more on AI than on employees. The top 1% of firms spend $7,500/employee/month on AI, significantly less than average software engineer salaries.
Spend-management company Ramp secured $750 million in funding at a $44 billion valuation, driven by corporate clients seeking to manage rising AI costs. CEO Eric Glyman highlighted the challenge of unpredictable token-based AI spending and Ramp's new product to optimize AI task routing.
Technology stocks, particularly chipmakers like Broadcom and Micron, declined on Thursday due to investor concerns over AI spending and market expectations catching up with the sector's strong performance. Analysts suggest a market 'rest' is due after significant gains.
Technology stocks declined Thursday, led by chipmakers Broadcom, Micron, and Marvell, as investors exited the semiconductor sector. Concerns over AI spending slowdown and chip price drops contributed to the sell-off.
Marvell Technology's stock price jumped more than 20% on June 2 after Nvidia CEO Jensen Huang predicted the semiconductor company could become the "next trillion-dollar company." Huang praised Marvell's role in AI system connectivity during an event in Taiwan.
Uber has introduced a $1,500 monthly spending cap per employee on AI tools, including coding assistants like Anthropic's Claude Code. This move follows the company's CTO revealing their annual AI budget was depleted in four months, and the COO questioning AI's direct impact on new consumer features.
Uber has introduced a $1,500 monthly spending cap per employee on AI tools, including coding assistants like Anthropic's Claude Code. This move follows the company exceeding its annual AI budget in just four months, prompting a reevaluation of AI's productivity impact by its CEO.
Microsoft is ending most internal Claude Code licenses by June 30, urging engineers to use its own GitHub Copilot CLI. The move, attributed to cost-cutting and toolchain unification, follows Claude Code's unexpected popularity among employees, which reportedly undercut Microsoft's homegrown product. While Claude models remain accessible via Copilot CLI, the experimental phase of free access is over.
Nvidia CEO Jensen Huang forecasts AI capital expenditures could reach $3-4 trillion annually by the end of the decade, significantly exceeding Wall Street estimates. This optimism is fueled by strong cloud revenues and projected growth in AI agents.
SpaceX filed an S-1 with the SEC for an IPO as soon as June 12, revealing 2025 revenues of $18.67 billion and a net loss of $4.94 billion due to AI development. The filing projects a $28.5 trillion addressable market, with plans for orbital AI compute satellites by 2028.
SpaceX files for IPO, revealing $1.75 trillion valuation and dual-class share structure, as Elon Musk's rivalry with OpenAI escalates
Salesforce CEO Marc Benioff projects spending hundreds of millions on AI tokens this year, shifting investment from engineering hires to AI tools for coding and other tasks. He stated AI has increased engineer productivity by over 30% and that engineers will work alongside AI agents rather than be replaced.
Market set for higher open amid positive Trump-Xi summit headlines; key earnings and IPOs in focus, including Cerebras Systems' $5.5B IPO and Cisco's blowout quarter.
Alibaba and Tencent are increasing capital expenditure on AI, focusing on Chinese-made chips to alleviate supply chain issues, with Alibaba targeting cloud services and Tencent prioritizing internal demand.
Cloud computing giants cannot afford to pinch pennies on the artificial intelligence buildout, CNBC's Jim Cramer argued Wednesday.
Amazon CEO Andy Jassy reassured investors about significant AI spending, calling it a major technological transformation that will drive long-term growth. He cited the rapid success of AWS as a precedent, emphasizing that upfront capital expenditure on infrastructure like data centers will yield substantial returns over time, ultimately improving financial performance.
CEO Andy Jassy said Amazon’s massive AI spending reflects a once-in-a-generation opportunity and will ultimately reward investors.
Major hyperscalers like Alphabet, Microsoft, Meta, and Amazon are aggressively increasing AI infrastructure spending despite rising hardware costs, signaling strong demand. Investors are increasingly scrutinizing whether this expenditure translates into revenue growth.
Wall Street rises despite Meta crashing on AI spending fears. The ASX is poised for a strong rebound after seven consecutive losing sessions. Follow the day's events and insights from our business reporters on the ABC News live markets blog.
Wall Street rises despite Meta crashing on AI spending fears. The ASX is poised for a strong rebound after seven consecutive losing sessions. Follow the day's events and insights from our business reporters on the ABC News live markets blog.
Alphabet shares rose over 7% while Meta fell 9% on Thursday following Q1 earnings, with investors showing divergent reactions to AI spending plans. Alphabet raised its 2026 capex forecast to $180-190 billion and reported 63% cloud growth, while Meta increased capex to $125-145 billion and is pursuing a $20-25 billion bond deal. JPMorgan downgraded Meta to neutral, citing a challenging path to returns on AI spending without a cloud business like Microsoft and Amazon.
Artificial intelligence investments by US tech giants continue to soar, dwarfing those of Chinese AI firms, but China’s rising appetite for AI applications will compel its tech companies to increase their AI spending this year, according to analysts. The largest US tech companies are on track for more than US$700 billion in AI capital expenditures this year, driven in part by rising memory costs and continuously growing demand for AI applications. Google and Microsoft on Thursday both said that...
