"Alphabet, Amazon, Meta and Microsoft all reported earnings yesterday, collectively estimating they will invest up to $665 billion in AI this year, almost 75% more than the $381 billion they spent in 2025."
"Amazon traded higher yesterday, thanks to solid cloud demand. You know what else a strong public cloud business does? It gives you a way to resell excess computing capacity if, say, AI demand softens."
"OpenAI CFO Sarah Friar reportedly wants more discipline over spending at her company, which is careening towards a trillion-dollar valuation with nary a penny of profit in sight."
Big Tech companies, including Alphabet, Amazon, Meta, and Microsoft, are set to invest up to $665 billion in AI this year, a 75% increase from 2025. The tech sector is experiencing a surge in spending, with banks benefiting from increased trading activity. Amazon's cloud business is thriving, while Alphabet reported an 81% profit increase due to cloud revenue growth. Concerns about the rapid obsolescence of AI hardware and the need for disciplined spending are also highlighted, alongside mixed investor reactions amid significant capital investments.
Read at Fortune
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