EBay is allocating more funds in its capital expenditure budget to advance its generative artificial intelligence initiatives.
During the first quarter, the online marketplace doubled its computing capacity for generative AI programs compared to the end of 2023, using its graphics processing unit (GPU) hardware. GPUs are crucial for generative AI operations.
While EBay hasn’t disclosed the exact amount spent on GPUs, Chief Financial Officer Steve Priest noted that investments in generative AI are increasingly taking up a larger portion of the company’s capital expenditures.
The company projects that its total capital expenditures in 2024 will remain consistent with last year, ranging between 4% and 5% of revenue. In 2023, EBay generated $10.1 billion, reflecting a 3% increase from the previous year.
Last fall, EBay introduced its “magical listing tool,” which assists sellers in creating listings by extracting product details from images.
Other applications of generative AI at EBay include customer-facing features that recommend apparel to shoppers and internal tools designed to enhance software developers’ productivity.
