Tech giants likely to ramp up AI spending spree after DeepSeek

THE BIGGEST TECH firms will ramp up their combined annual spending on artificial intelligence (AI) to more than $500 billion by early next decade, driven in part by a newer approach to AI from DeepSeek and OpenAI, according to Bloomberg Intelligence.

- JACKIE DAVALOS

A group of so-called hyperscale companies, including Microsoft, Amazon and Meta Platforms, are projected to spend $371 billion on data centers and computing resources for AI in 2025, a 44% increase from the year prior, according to a report published Monday. That amount is set to rise to $525 billion by 2032, growing at a faster clip than Bloomberg Intelligence expected before the viral success of DeepSeek.