Tesla Inc. (TSLA) co-founder and xAI founder Elon Musk expressed surprise at the quantum and pace of investments being made in the artificial intelligence (AI) sector.

In a post on X on Friday, Musk called the spending spree on AI“mind-blowing,” while responding to an announcement made by Alphabet Inc. (GOOG) (GOOGL) subsidiary Google's CEO, Sundar Pichai, about a new $40 billion investment in Texas.

“It's mind-blowing how much money is being spent on AI compute so fast! But still many orders of magnitude to go,” Musk said in the post.

Pichai responded, saying,“Between abundant sand, plenty of sun and space (literally) to put it in, we can do it.”

Google is investing in data centers for cloud and AI services, including new facilities in Armstrong and Haskell counties, as well as an investment to beef up the electricity grid with a new $30 million Energy Impact Fund to scale and accelerate energy initiatives, the company stated in its announcement.

xAI is not listed publicly at the moment. Retail sentiment on Stocktwits around the company trended in the 'bullish' territory at the time of writing.

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