Chinese firms face pressure on AI investments as US peers’ spending keeps soaring

Artificial intelligence investments by US tech giants continue to soar, dwarfing those of Chinese AI firms, but China’s rising appetite for AI applications will compel its tech companies to increase their AI spending this year, according to analysts.The largest US tech companies are on track for more than US$700 billion in AI capital expenditures this year, driven in part by rising memory costs and continuously growing demand for AI applications.Google and Microsoft on Thursday both said that their full-year capex would reach about US$190 billion, while Meta Platforms raised its capex estimates for this year to US$145 billion. Amazon kept its outlook unchanged from last year at US$200 billion.