The AI spending frenzy is just getting started, with tech giants Microsoft, OpenAI, and Meta leading the charge. In a recent announcement, OpenAI unveiled Project Stargate, a multi-hundred-billion-dollar AI infrastructure project, which has sparked a wave of tech CEO chest-thumping. Meanwhile, Microsoft CEO Satya Nadella has committed to an $80 billion AI infrastructure buildout, and Meta's Mark Zuckerberg has announced plans to invest $60-65 billion in capex this year.

The Project Stargate unveiling at the White House generated significant buzz, with headlines focusing on the massive numbers involved. However, what's more interesting is the dynamics at play between Microsoft and OpenAI. Despite being OpenAI's biggest backer, Microsoft has decided not to participate in Project Stargate, with Nadella instead opting to focus on his own AI infrastructure buildout. This move has led to speculation about what Nadella knows that the rest of us don't, and whether OpenAI can secure the funding it needs to reduce its dependence on Microsoft for compute.

In a recent post on X, Nadella responded to Elon Musk's comment about having the money for AI infrastructure, saying "And all this money is not about hyping AI, but is about building useful things for the real world!" This response can be interpreted as a dig at Sam Altman, CEO of OpenAI, and raises questions about the motivations behind these massive investments.

Meanwhile, Mark Zuckerberg has announced plans to invest $60-65 billion in capex this year, with a focus on building a massive 2GW data center in Louisiana. This move is seen as a direct response to Project Stargate, with Zuckerberg seeking to outdo his competitors in the AI infrastructure space.

In an exclusive interview with Reddit CEO Steve Huffman, we discussed the company's priorities for 2025, including growing its user base, staying profitable, and using AI to improve search functionality. Huffman emphasized the importance of having good relationships with other players in the AI space, while also maximizing the value of Reddit's own data.

The AI spending frenzy is quickly becoming the defining theme of 2025, with Big Tech seeing AI as the most existential technology of the coming era. As the industry continues to evolve, one thing is clear: the companies that can invest the most in AI infrastructure will have a significant advantage in the years to come.

In other news, competitors are pouncing on TikTok's misfortune, with Meta pre-announcing its Capcut competitor and trying to lure creators away with cash. Substack, Bluesky, and X are also making moves to encourage more video consumption. Meanwhile, President Trump has expressed his support for Elon Musk or Larry Ellison buying TikTok, despite the ongoing controversy surrounding the app's availability in the US.

As the AI landscape continues to shift, one thing is certain: the companies that can adapt and invest the most in AI infrastructure will be the ones that come out on top. With the stakes higher than ever, it's clear that the AI spending frenzy is only just getting started.