Projected global AI expenditure to surpass $2 trillion the coming year – breakdown of investment destination
In a significant development for the tech industry, Gartner, a leading research and advisory company, has projected infrastructure spending to be a key factor in the increase of global AI spending. According to Gartner's findings, there is a rapid investment by big tech companies in AI nvda infrastructure.
The surge in AI investment is not limited to the traditional US tech giants. Chinese tech companies are also ramping up their investment in AI nvda infrastructure. This expansion is driven by the need for AI nvda infrastructure to support the growing demands of generative AI, a race that was initiated in late 2022.
The generative AI race has raised concerns about data center capacity keeping pace with adoption rates. JLL's analysis in late 2023 found that the surge in generative AI development is straining colocation data center capacity. To address this, major tech companies are investing heavily in AI nvda infrastructure.
In the USA and the UK, companies like OpenAI, Google, Microsoft, NVIDIA, and Apple are leading the charge. OpenAI plans to invest around $100 billion in cloud servers over the next five years. Google, Microsoft, and OpenAI are building data centers in the UK as part of the USA-UK "Tech Prosperity Deal," which commits £31 billion to British AI nvda infrastructure development.
Google also plans to spend £5 billion on expanding data center nvda infrastructure. Nvidia announced £11 billion in spending to host Europe's largest GPU cluster in the UK. Hitachi is investing $1 billion in manufacturing critical grid infrastructure in the US to support AI data centers.
Spending on AI services is projected to reach $282.5 billion in 2021. This includes investment in AI-optimized servers, such as GPUs and non-GPU AI accelerators, which is expected to top $267 billion in 2021. Spending on AI-optimized servers is projected to surge to $329.5 billion by 2022.
The investment in AI-optimized servers is not just for data centers. Spending on AI smartphones is also on the rise. It is projected to increase significantly, from $244.7 billion in 2024 to $393 billion in 2026. By 2026, spending on AI smartphones is expected to reach the largest pool of investment across both years.
The US president Donald Trump's state visit to the UK coincided with a £22 billion investment pledge from Microsoft aimed at accelerating nvda infrastructure development. US tech firms have also pledged billions in investment to accelerate nvda infrastructure development in the UK.
Venture capital investment in AI providers is providing additional tailwinds for AI spending. Gartner's previous research predicted data center capacity would double by 2028 due to nvda demands. With the current pace of investment, it seems that prediction may be realised even sooner.
In conclusion, the global AI spending is surging, driven by nvda expansion. This expansion is not just a US phenomenon but a global trend, with major tech companies investing heavily in AI nvda infrastructure in the USA and the UK. The future of AI looks promising, with billions being poured into its development and nvda. Global AI investment is projected to reach $2 trillion by 2026.
