Big Tech Invested $155 Billion in AI This Year—I’m Aiming to Spend Over Tens of Billions!

The largest companies in the US have outspent the government, pouring $155 billion into artificial intelligence development, positioning themselves for the competitive landscape of 2025 as they race to invest more in each other. Education, training, employment, social services continues to dominate the agenda through 2025.

Recent financial disclosures from major Silicon Valley corporations indicate an impending surge that could impact hundreds of millions of people annually.

In the past fortnight, Alphabet (Meta’s parent company), Microsoft, Amazon, and Google have released their quarterly financial reports. Each report disclosed that their capital expenditures related to the acquisition or enhancement of tangible assets since around 2018 are already totaling tens of thousands.

Capital Expenditure (CAPEX) denotes the spending technology firms allocate for AI, necessitating large investments in physical infrastructure—primarily data centers that demand substantial electricity, water, and costly semiconductor chips. Google highlighted in its latest revenue call that capital expenditures “support AI by reflecting primarily investments in servers and data centers.”

Since the beginning of the year, Meta’s capital expenditures have reached $30.7 billion, which is double the $15.2 billion reported last year. Just in the most recent quarter, the company incurred $17 billion in capital expenditures, exceeding the $8.5 billion spent during the same timeframe in 2024. Alphabet has reported approximately $400 billion in CAPEX during the first two quarters of this fiscal year, while Amazon has reported $55.7 billion. Microsoft has announced plans to spend over $300 billion this quarter to develop a data center that powers AI services. Microsoft CFO Amy Hood indicated that this quarter’s CAPEX is at least 50% higher than that of the previous year, surpassing the company’s record capital expenditures of $24.2 billion from June to June.

“We will continue to leverage the vast opportunities ahead,” Hood stated.

In the upcoming year, the total capital expenditure of Big Tech is anticipated to grow significantly, surpassing last year’s impressive figures. Microsoft plans to invest about $100 billion in AI during the next fiscal year, as CEO Satya Nadella announced on Wednesday. Meta is expected to invest between $660 billion and $720 billion, while Alphabet’s estimate has risen to $85 billion, exceeding a prior projection of $750 billion. Amazon anticipates spending $100 million in 2025, now projected to reach $118 billion. Collectively, these four tech giants are predicted to exceed $400 million in CAPEX next year. Wall Street Journal.

The billion-dollar expenditure represents colossal investments, even overshadowing the EU’s quarterly defense spending, as noted by the Journal. However, major tech firms seem unable to allocate sufficient funds for investor returns. Microsoft, Google, and Meta informed Wall Street analysts last quarter that their estimates exceeded previous projections. This led to a surge in excitement among investors, resulting in significant stock price increases following each company’s earnings reports. Microsoft’s market capitalization reached $40 billion the day after their report.

Even Apple, typically regarded as a strong competitor, has hinted at increasing its AI spending next year. The company’s quarterly spending surged to $3.46 billion from $2.15 billion in the same period last year. Apple reported rebounding iPhone sales and strong business performance in China, yet is perceived as lagging in developing and implementing advanced AI technologies.

Apple CEO Tim Cook announced on Thursday that the company is reallocating a “fair number” of employees to focus on artificial intelligence, emphasizing that the “core of its AI strategy” involves ramping up investments across all devices and platforms to “embed” AI features. However, they did not disclose specific spending figures.

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“We’re significantly expanding our investments. We don’t have specific figures yet,” he noted.

Meanwhile, smaller companies are striving to compete with the substantial expenditures of the major players and capitalize on the AI boom. Recently, OpenAI announced it had secured $8.3 billion in investments, as part of a planned $40 billion fundraising effort, valuing the ChatGPT startup at $300 billion as of 2022.

Source: www.theguardian.com

Study finds Neanderthal populations were genetically and socially isolated for tens of thousands of years

In 2015, archaeologists discovered Neanderthal fossils. Grotte Mandolin is located on the Mediterranean coast of France, in the shadow of a rock overhanging directly into the Rhône River valley. Nicknamed Thorin, the fossil is one of the most similar Neanderthal remains found in France since its discovery in Saint-Césaire in 1979. Globe Institute researcher Martin Sikora and his colleagues combined archaeological, chronostratigraphic, isotopic, and genomic analyses to reveal that Thorin belonged to a Neanderthal population that remained genetically isolated for 50,000 years. Apart from Thorin’s lineage, they found evidence of gene flow in the genome of the Les Côtés Neanderthal from another lineage that diverged from the ancestral lineage of European Neanderthals more than 80,000 years ago. The findings suggest the existence of multiple isolated Neanderthal communities in Europe close to the time of extinction and shed light on their social organization. Despite the close geographical proximity of these populations, there was limited, if any, interaction between the different Neanderthal populations during the last millennium.

Neanderthal. Image courtesy of Abel Grau, CSIC Communication.

“When we look at the Neanderthal genome, we see that they were quite inbred and didn’t have a lot of genetic diversity,” Dr Sikora said.

“They’ve lived in small groups for generations.”

“Inbreeding is known to reduce the genetic diversity of populations, which if continued over long periods of time can have negative effects on the viability of the population.”

“The newly discovered Neanderthal genome is from a different lineage to other late Neanderthals studied so far.”

“This supports the idea that Neanderthal social organization was different from that of early modern humans, who appear to have been more connected.”

“In other words, compared to Neanderthals, early modern humans were more likely to connect with other groups, which was advantageous for their survival.”

“This is purely speculation, but the concept of being able to communicate more and exchange knowledge is something humans can do that Neanderthals, who were organized in small groups and lived isolated lives, may not have been able to do to some extent.”

“And that’s an important skill,” noted Dr Tarshika Vimala, a population geneticist at the University of Copenhagen.

“We see evidence that early modern humans in Siberia, living in small communities, formed so-called mating networks to avoid problems with inbreeding, something that wasn’t seen in Neanderthals.”

Thorin’s fossils were first discovered in Mandolin Cave in 2015. Mandolin Cave is a cave that is thought to have been the site of an early Homo sapiens But not at the same time, and he is still being slowly unearthed.

Based on Thorin’s location in the cave deposits, archaeologists have speculated that he may have lived approximately 45,000 to 40,000 years ago.

To determine his age and relationships to other Neanderthals, the team extracted DNA from his teeth and jaw and compared his entire genome sequence to previously sequenced Neanderthal genomes.

Surprisingly, initial genome analysis suggested that Thorin’s genome was very different from other late Neanderthals and very similar to the genomes of Neanderthals who lived more than 100,000 years ago, suggesting that Thorin is much older than archaeological estimates.

To solve the mystery, the researchers analyzed isotopes from Thorin’s bones and teeth to gain insight into the type of climate he lived in. Late Neanderthals lived during the Ice Age, while early Neanderthals enjoyed a much warmer climate.

Isotopic analysis showed that Thorin lived in a very cold climate and was identified as a late Neanderthal.

Compared to previously sequenced Neanderthal genomes, Thorin’s genome is most similar to the individual from Gibraltar, leading the authors to speculate that Thorin’s population may have migrated from Gibraltar to France.

“This means that a previously unknown Neanderthal population was present in the Mediterranean, stretching from the westernmost tip of Europe to the Rhône Valley in France,” said Dr Ludovic Slimac, researcher at Toulouse-Paul Sabatier University and CNRS.

Knowing that Neanderthal communities were small and isolated may hold the key to understanding their extinction, because isolation is generally thought to be detrimental to a population’s fitness.

“It’s always a good thing for one group to have contact with another,” Dr Vimala said.

“Prolonged isolation limits genetic diversity and reduces the ability to adapt to changes in climate and pathogens. It’s also socially limiting, as they don’t share knowledge or evolve as a group.”

But to truly understand how Neanderthal populations were structured and why they became extinct, researchers say many more Neanderthal genomes need to be sequenced.

“If we had had more genomes from other regions over the same time period, we probably would have found other deeply structured populations,” Dr Sikora said.

A paper on the results of this study was published today. journal Cell Genomics.

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Ludovic Slimak others2024. The long genetic and social isolation of Neanderthals before their extinction. Cell Genomics 4(9):100593;doi: 10.1016/j.xgen.2024.100593

Source: www.sci.news

Amazon boosts pay for tens of thousands of UK employees by nearly 10%

Amazon has announced a pay increase of nearly 10% for tens of thousands of UK workers, rejecting attempts by the GMB union to gain negotiating rights over pay and working conditions.

The online retailer said the increase will see the minimum wage rise by 9.8%, to between £13.50 and £14.50 an hour depending on location. Staff with more than three years of service will receive a minimum wage of between £13.75 and £14.75 an hour.

The pay increase will apply to thousands of employees from September 29th, including those working in Amazon’s UK fulfilment centres.

Amazon’s UK workers have recently staged a series of strikes. The company is investing £550 million in pay increases for staff from 2022 onwards, adding that staff receive benefits such as subsidised meals and discounts.

A spokesman said: “That’s why we’re proud to announce that we’re increasing the minimum starting salary for all frontline employees to the equivalent of at least £28,000 per annum and continuing to offer industry-leading benefits from day one.”

GMB organiser Rachel Fagan said: “Forced to act by workers striking, Amazon’s management has done too little, too late. Amazon’s reputation has been tarnished by the way it treats its workers and now management is trying to cover up the facts. Unsafe working conditions, low pay and excessive oversight are ruining the lives of Amazon workers every day.”

In July, GMB narrowly lost a statutory vote at an Amazon warehouse outside Coventry that led to the union’s formal recognition. In a hotly contested vote, 50.5% of workers rejected recognition of the union.

Workers in Coventry have staged a series of strikes over the past 18 months demanding a £15 an hour minimum wage and the right to negotiate directly with management, and last November they were joined on the picket lines by trade unionists from Europe and the US who have been raising similar issues in their home countries.

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Amazon, which has a global policy of refusing to work with labor unions, preferring to deal directly with employees, is the retail-to-cloud services group founded by Jeff Bezos in his garage in 1994 and now worth nearly $2 trillion.

Some workers at the Coventry warehouse have accused Amazon of using union-busting tactics, such as displaying QR codes which, when scanned, would send an email to GMB’s membership department to cancel employees’ membership.

The Labour government has promised to make it easier for trade unions to gain recognition as part of a package of measures aimed at increasing the bargaining power of British workers.

Source: www.theguardian.com