Why Big Tech's $700 billion AI splurge is misleading

Meta CEO Mark Zuckerberg. Ed Mulholland/Zuffa LLC Rising component prices are driving Big Tech's AI spending surge. Microsoft and Meta's capital expenditure hikes largely result from higher component prices. That suggests Big Tech companies haven't massively expanded their buildout plans lately. Big Tech's AI spending is surging, though not necessarily because companies are building significantly more capacity. This week, industry executives pointed to the same underlying issue: sharply ris...