QuickTake
Why AI Is So Expensive
The push for bigger AI models, and more chips and data centers to support building them, is driving up costs for technology companies.
An Nvidia Corp. HGX H100 artificial intelligence graphics processing unit
Photographer: I-Hwa Cheng/BloombergMore than 18 months into the generative AI frenzy, some of the biggest tech companies are proving that artificial intelligence can be a real revenue driver. But it’s also a huge money pit.
Microsoft Corp. and Alphabet Inc.’s Google reported surging cloud revenue with their latest quarterly results, as business customers spent more on their AI services. Meta Platforms Inc., while further behind in monetizing the technology, said its AI efforts have helped bolster user engagement and ad targeting.