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Acquisitions

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Thursday, 20 August 2026

AI is becoming a financial engineering business

Fortune 23 ● 8 sources

Big Tech is shifting AI competition from improving large language models to financing and operating the AI infrastructure that supports many interchangeable models. Since the AI boom began in 2023, Amazon, Microsoft, Alphabet, and Meta have collectively put $1.1 trillion into AI infrastructure. As a result, cloud providers and Wall Street financing are capturing returns while software buyers delay purchases and some investors question whether the spending will ultimately pay off.

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