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Amid the fierce competition in the field of artificial intelligence (AI), executives from Meta and Google recently admitted that their companies may have spent too much on AI infrastructure. However, they also stressed that the risk of underinvestment is much greater than the risk of overinvestment.

The necessity of AI investment

Meta CEO Mark Zuckerberg said in a podcast this week that in order to ensure Meta remains at the forefront of AI, the company has spent billions of dollars on Nvidia GPUs to develop and train advanced AI models. However, he also admitted that the hype about AI may lead to excessive investment.

Because the consequence of falling behind is that you will be at a disadvantage in the most important technologies for the next 10 to 15 years.

Coincidentally, Google CEO Sundar Pichai expressed similar views this week.

During Google's earnings call on Tuesday, Google CEO Sundar Pichai was asked when Google's $12 billion per quarter investment in AI would pay off. He admitted that it would take time for AI products to mature and become more useful.

AI is expensive, but the risk of underinvestment is even greaterGoogle may have invested too much in AI infrastructure, primarily by buying GPUs from Nvidia. Even if the AI ​​boom slows, the data centers and computer chips the company has purchased could be put to other uses. To us, the risk of underinvesting is far greater than the risk of overinvesting.

The competition and market pressure brought by AI force technology giants to keep going even for a moment.

In addition to Meta and Google, companies such as Microsoft, Amazon, Oracle and Tesla have all turned to Nvidia to buy a large number of GPUs. These companies have publicly stated that AI investment is a core priority this year and in the foreseeable future.

David Cahn, partner at Sequoia Capital, pointed out in a blog last week that the crazy spending of technology giants around AI is the result of dynamic competition, conforms to the dynamic equilibrium of game theory, and forms a "cycle of escalating competition."

Tech giants see artificial intelligence as both a threat and an opportunity, and they can’t afford to sit back and wait to see how the technology develops. They must act now.