Meta, Microsoft Test Investors With 89% AI-Fueled Spending Surge

Tech Giants' Massive AI Investments: A Billion-Dollar Bet on the FutureThe largest technology companies, including Alphabet, Meta, and Microsoft, are making unprecedented investments in artificial intelligence, spending nearly $78 billion last quarter alone. This surge in spending, a nearly 90% increase from last year, is driven by a race to secure a piece of the AI future. Microsoft, in particular, has been aggressive, investing in companies like OpenAI and expanding its Azure cloud services. Alphabet is also capitalizing on the AI wave, with growth in its Gemini AI assistant and cloud division. However, Meta's picture is more uncertain, as its AI features are primarily tied to ad targeting on Facebook and Instagram. These massive investments have raised concerns about a potential bubble on Wall Street, with Meta's and Microsoft's stocks dropping after recent financial disclosures. Despite these risks, the tech giants remain confident in their AI investments, with demand for AI services soaring and backlogs in the hundreds of billions. Meta, however, is more exposed due to its focus on in-house AI capabilities.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.