Big Tech investors to gauge payoff as AI spending set to hit $600-billion
Big Tech is investing heavily in artificial intelligence, with spending expected to reach $600 billion this year. Investors are eager to see if this investment will translate into growth in cloud computing and advertising. Quarterly results from major companies like Alphabet, Microsoft, Meta, and Amazon are anticipated to provide insights into the effectiveness of these AI expenditures.
- ▪Big Tech has spent hundreds of billions on AI over the past three years.
- ▪Investors are questioning whether this spending will yield significant returns.
- ▪Quarterly results from major companies will reveal the impact of AI investments on growth.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountBig Tech has spent hundreds of billions of dollars over three years to power the artificial intelligence boom. But investors still want one answer: will all this pay off?Quarterly results from Alphabet (GOOGL-Q), Microsoft (MSFT-Q), Meta (META-Q) and Amazon (AMZN-Q) - all due on Wednesday - will gauge if the sky-high spending on AI has driven enough growth in cloud computing and advertising to justify the cost.The four companies are on track to pour around US$600-billion into AI this year, a historic outlay that has squeezed cash flows and tested Wall Street’s patience, even as their stocks have largely held up on expectations of future gains.Funding that race has consequences.
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