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Tech Giants Expected to Ramp Up AI Spending Spree After DeepSeek [Yahoo! Finance Canada]

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Most Read from Bloomberg A group of so-called hyperscale companies, including Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc., 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. Until recently, much of the investment in artificial intelligence has gone to data centers and chips that are used to train, or develop, massive new AI models. Now, tech firms are expected to move more spending to inference, or the process of running those systems after they've been trained. The shift in investment has been accelerated by the release of new reasoning models from OpenAI and China's DeepSeek, among other companies, the report said. These systems take more time to compute responses to user queries, mimicking the proc
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