Big tech companies have increased their infrastructure spending as demand for artificial intelligence (AI) continues to grow.

The push to expand and develop infrastructure among major technology companies is believed to have been driven by the goal of improving the training of AI models, Dell’Oro Group said. Investing in AI requires data centers because they provide the computing infrastructure needed to train, deploy, and manage AI systems.

The three largest public cloud providers, Amazon Web Services (AWS), Azure and Google Cloud, were found to have seen a sharp increase in AI investment in the third quarter of this year.

“As we expand our infrastructure to meet the growing demand for our cloud and AI services, we do so with a holistic approach based on the principle of being a good neighbor in the communities in which we operate.”

Cloud refers to a network of remote servers hosted on the Internet that store, manage, and process data, rather than relying on a local computer or on-premises servers. It is a metaphor for accessing computing resources and services over the Internet.

Companies can choose to pay for access to their files and computing power through the cloud rather than investing in databases and hardware, so the cloud also offers companies data analytics, AI and applications for business functions, according to oracle.com.

Artificial intelligence is important to improve cloud computing, and cloud computing provides the necessary infrastructure for AI, as reported by oracle.com, so the two go hand in hand, and the integration of artificial intelligence into cloud computing has become a major source of investment for technology companies.

He said that “the larger the AI ​​cluster, the more complex and sophisticated AI models can be trained.”

“Applications like Copilot, chatbots, search will be more targeted to each user and application, which will ultimately bring more value to users and also how much end users will pay for such a service,” he added.

He also said that in addition to the AI ​​training infrastructure, “investments are also growing on the inference side to facilitate the massive volume of user queries in a timely manner.”

He added that cloud providers are also “building AI training and inference infrastructure that they lease to end users in the public cloud to develop their own applications.”

Another sign of the expanding market for artificial intelligence was the rise in revenue of Nvidia, the computer chip designer that dominates the market in providing the chips needed for artificial intelligence systems.

The company posted a 94 percent jump in revenue at the end of October as it struggled to meet strong demand for its chips used for AI, its chief financial officer said in a third-quarter earnings report last month.

In September, another Dell’Oro Group report also found that infrastructure investment by cloud companies boosted the server and storage markets by 127 percent in the second quarter of this year, reaching a record high.