Earlier this month, Microsoft said it is spending $80 billion on AI infrastructure in 2025 alone while Meta CEO Mark Zuckerberg last week said the social media company planned to invest between $60 billion and $65 billion in capital expenditures in 2025 as part of its AI strategy.
"If model training costs prove to be significantly lower, we would expect a near-term cost benefit for advertising, travel, and other consumer app companies that use cloud AI services, while long-term hyperscaler AI-related revenues and costs would likely be lower," wrote BofA Securities analyst Justin Post in a note Monday.