CTP: The AI Infra Boom Continues, But What's Next?
As the first half of fiscal 2025 draws to a close, one trend has emerged above all others: Hyperscalers and AI firms are throwing hundreds of billions of dollars into infrastructure to support the development of ever-smarter and faster AI applications. And they haven't shown any signs of slowing, even though we've pointed out that the share of resources they are allocating is in bubble territory. It looks like it's gonna continue as such for the time being.
Last week alone, Alphabet raised its capital expenditure guidance by $10 billion for the year, to $85 billion. OpenAI declared it was well on the way to achieving $500 billion in AI infra spending by 2029. Meta has raised its capex guidance by up to $12 billion for the year. And Oracle saw nearly 210% growth in capex for its recently closed fiscal 2025. And that’s just the tip of a virtual iceberg of spending worldwide.
Inside Enterprise Demand
That's the supply side. What about the demand side? We are studying this carefully. Enterprises are moving more cautiously to adopt AI. Our data shows that so far, they see many benefits, including concentrated areas such as process optimization (21% of the case studies we have examined), personalization and customer relationships (13.3%), and automation of routine tasks (12%).
This data comes from Futuriom's analysis of more than 120 enterprise cases studies. Though much progress is evident, many companies remain concerned about AI security and the impact of the technology on the corporate structure and processes.
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