Big Tech companies are spending big on artificial intelligence (AI), with Amazon (AMZN) set to spend more than $100 billion in capital expenditures in 2025.
Faisal Hoque, author of Transcend: Unlocking Humanity in the Age of AI, joins Catalysts with Seana Smith to talk about Big Tech’s AI spending in the context of China’s DeepSeek.
Hoque says the market may be conflating consumer and enterprise applications of AI. "The larger business tech companies’ business models are enterprise; it’s not necessarily just consumer [products]," he explains. "When you look at tech like DeepSeek and the things that are coming out in the market, the enterprises are not going to adopt those kinds of technology and this whole kind of sort of risk associated with it."
"I’m not surprised at all that Amazon or Microsoft (MSFT) or any other Big Tech are spending more money to gear up their infrastructure and their models so that they can be utilized in a secure environment in an enterprise setting."
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