Catenna, Monday, March 17, 2025—After DeepSeek’s success, the biggest tech firms in the US will increase their combined annual spending on artificial intelligence to more than $500 billion by early next decade, Bloomberg Intelligence reported on Monday.
Bloomberg Intelligence said companies, including Microsoft, Amazon, and Meta Platforms are projected to spend $371 billion on data centers and computing resources for AI in 2025, a 44% increase from the year prior.
That amount is set to rise to $525 billion by 2032, growing at a faster clip than expected before the viral success of DeepSeek.
Until recently, much of the investment in artificial intelligence has gone to data centers and chips that are used to train, or develop, massive new AI models. Now, tech firms are expected to move more spending to inference, or the process of running those systems after they’ve been trained.
The report said the shift in investment has been accelerated by the release of new reasoning models from OpenAI and China’s DeepSeek, among other companies.
These systems take more time to compute responses to user queries, mimicking the process of how humans think through problems.
The rise of DeepSeek, which claimed to develop a competitive model for a fraction of the cost of some leading US rivals, prompted questions in the US tech industry over heavy investments in developing AI. Some leading AI companies are now embracing more efficient AI systems that can run on fewer chops.
“Capital spending growth for AI training could be much slower than our prior expectations,” Mandeep Singh, an analyst with Bloomberg Intelligence, wrote in the report. But the immense amount of attention on DeepSeek, he wrote, will likely push tech firms to “increase investments” in inference, making it the fastest-growing segment in the generative AI market.
