Big Tech and Chipmakers Pour Hundreds of Billions Into AI Infrastructure as Demand Surges
GeokHub
Contributing Writer
Dec 30 | Global (GeokHub) The race to dominate artificial intelligence is triggering an unprecedented wave of investment, with technology giants, cloud providers and chipmakers committing hundreds of billions of dollars to data centres, custom processors and long-term computing capacity.
From Silicon Valley to Asia, companies including OpenAI, Nvidia, Meta, Google, Microsoft and Amazon are locking in massive deals to secure the hardware and cloud power needed to train and run next-generation AI systems, as demand for generative and agent-based AI accelerates.
Industry executives say the scale of spending reflects a structural shift: AI is no longer a research project, but core infrastructure underpinning future growth across software, media, manufacturing and defence.
OPENAI AT THE CENTRE OF THE AI BUILDOUT
OpenAI has emerged as one of the biggest buyers of computing power in history, striking long-term partnerships across the cloud and semiconductor ecosystem.
Amazon is weighing an investment reportedly worth around $10 billion, while Disney plans to inject $1 billion into OpenAI and license iconic characters from franchises such as Star Wars, Marvel and Pixar for use in AI-generated video — a move that could reshape entertainment production.
On the hardware side, OpenAI has teamed up with Broadcom to develop its first in-house AI processors and signed a multi-year supply deal with AMD, which also gives OpenAI the option to acquire a stake in the chipmaker.
Nvidia, already OpenAI’s most critical supplier, is expected to invest heavily in the company while providing advanced data-centre chips. Meanwhile, Oracle has agreed to supply computing capacity on a scale rarely seen before, with reports estimating the cloud deal at hundreds of billions of dollars over several years.
Adding to this, Nvidia-backed CoreWeave signed a nearly $12 billion long-term contract with OpenAI earlier this year.
STARGATE: A HALF-TRILLION-DOLLAR AI INFRASTRUCTURE BET
One of the most ambitious projects underway is Stargate, a joint venture involving SoftBank, OpenAI and Oracle, aimed at building vast AI-focused data-centre networks.
Announced earlier this year, the project could see investments reach up to $500 billion, underscoring how governments and corporations increasingly view AI infrastructure as strategic national and economic assets.
META, GOOGLE AND MICROSOFT SCALE UP
Meta Platforms is also aggressively expanding its AI footprint. The company is acquiring Chinese startup Manus in a deal valuing it at up to $3 billion, as CEO Mark Zuckerberg pushes to embed agentic AI across Facebook, Instagram and WhatsApp.
Meta has also secured massive computing supply agreements, including multi-billion-dollar cloud deals with CoreWeave, Oracle, and Google, alongside a major stake in data-labeling firm Scale AI.
Google, meanwhile, plans to invest $40 billion in new data centres in Texas alone through 2027, while continuing to expand its global cloud network. The company has also licensed technology from AI coding startup Windsurf in a deal worth over $2 billion.
Microsoft is deepening its AI partnerships as well, committing billions to Anthropic, whose Claude chatbot competes with OpenAI’s models. Nvidia is also backing Anthropic, while the startup pledges to spend tens of billions running its workloads on Microsoft’s cloud infrastructure.
NVIDIA AT THE HEART OF THE AI ECONOMY
Nvidia remains the linchpin of the AI boom, extending its influence far beyond chip sales.
The company has agreed to license technology from AI chip startup Groq, is backing large-scale data-centre acquisitions alongside BlackRock and Microsoft, and is investing $5 billion in Intel, giving it a meaningful stake in the struggling U.S. chipmaker.
Through agreements with cloud providers such as CoreWeave, Nvidia is also guaranteeing demand for its chips by committing to absorb unused capacity — effectively underwriting parts of the AI cloud market.
AI SPENDING GOES GLOBAL
Beyond Silicon Valley, companies worldwide are racing to secure AI-ready infrastructure.
Amazon has doubled its investment in Anthropic to $4 billion, Tesla has signed a $16.5 billion chip supply agreement with Samsung, and SoftBank is expanding its AI portfolio through a $4 billion acquisition of DigitalBridge, a major digital infrastructure investor.
Intel, meanwhile, has received a $2 billion capital injection from SoftBank as it attempts to stabilise operations after years of strategic missteps.
A NEW INDUSTRIAL ERA
Executives and analysts increasingly compare the AI build-out to past industrial revolutions, arguing that access to computing power will define corporate winners and losers for decades.
With demand still rising and competition intensifying, the scale of investment suggests that the AI arms race is only just beginning.
