Tech's splurge on AI chips has companies in 'arms race' that's forcing more spending

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Even Mark Zuckerberg admits that Meta and its rivals might be spending too much money on AI chips.

Executives at Meta and Google admitted this week that their companies may be spending too much on artificial intelligence infrastructure."Because the downside of being behind is that you're out of position for like the most important technology for the next 10 to 15 years," Meta CEO Mark Zuckerberg said on a podcast.Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023.

"Because the downside of being behind is that you're out of position for like the most important technology for the next 10 to 15 years," Zuckerberg said. David Cahn, a partner at venture firm Sequoia, wrote in a blog post last week that the dynamic driving the spending is competitive and"The cloud giants see AI as both a threat and an opportunity and do not have the luxury to wait and see how the technology evolves," CahnOn Wednesday, Cahn followed up by saying that Zuckerberg's and Pichai's comments about limiting downside bolstered his theory.

 

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