"Google parent Alphabet is setting aside $180 billion to $190 billion for AI-driven capital expenditures this year, while Meta Platforms has increased its AI spending forecast to a range of $125 billion to $145 billion."
"Incorporating generative AI and large language model capabilities into cloud infrastructure service platform Google Cloud sent high-margin sales skyrocketing 63% in the March-ended quarter."
"Meta has incorporated generative AI into its social media advertising platform, enabling its customers to create unique static and video messages that can improve clickthrough rates and enhance its exceptional ad pricing power."
"As many of Wall Street's most influential businesses increase their AI capex, we've witnessed a concurrent slowdown in share repurchase activity. After Alphabet and Meta spent $15.1 billion and $12.8 billion, respectively, to buy back their common stock in the first quarter of 2025, both companies spent"
Investors have long sought a technology comparable to the internet’s impact on corporate and retail markets. Artificial intelligence is positioned as that game-changing capability by enabling software and systems to make split-second autonomous decisions. Alphabet plans $180 billion to $190 billion in AI-driven capital expenditures this year, while Meta forecasts $125 billion to $145 billion in AI spending. Early results support the investment: Google Cloud’s incorporation of generative AI and large language model capabilities helped high-margin sales rise 63% in the March-ended quarter. Meta integrated generative AI into its social media advertising platform, allowing customers to create unique static and video messages that can improve clickthrough rates and strengthen ad pricing power. Higher AI capex coincides with slower share repurchase activity.
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