Amazon announced a substantial investment of up to $50 billion to enhance AI and supercomputing capabilities for the U.S. government, marking it as the fourth-largest AI deal of 2023. This move aligns with projections from UBS forecasting global AI spending to reach $375 billion by year-end and surpass $3 trillion annually by 2030. The investment aims to address the growing demand for AI infrastructure, including the capacity for data centers designed for federal agencies. Amid concerns of an AI stock bubble, a Bank of America survey reveals that 53% of investors believe these stocks are over-inflated. Notable AI investments this year include OpenAI’s $500 billion partnership with SoftBank and Oracle, a $300 billion deal for computing power with Oracle, and a $100 billion commitment from Nvidia. With increasing funding and interest in AI, the landscape suggests significant growth but also rising investor skepticism regarding stock valuations.
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