Tech
Big Tech ramps up AI spending as investor confidence grows
Big Tech invests heavily in AI amid soaring returns, boosting investor confidence and driving revenue growth
Big Tech invests heavily in AI amid soaring returns, boosting investor confidence and driving revenue growth
– Big Tech investments in AI are driving revenue growth in search, advertising, and cloud computing.
– Microsoft plans to spend $30 billion this quarter, while Alphabet raises its budget by $10 billion to $85 billion.
Microsoft and Alphabet have ramped up spending to address capacity shortages as AI services demand surges, signalling AI as a key growth driver. Analysts caution monetisation is still immature, yet investor sentiment remains optimistic.
The trend appears supportive for Amazon, which is preparing to release earnings amid a robust demand for AI technology that is helping shield the tech sector from economic uncertainties.
Investment Confidence
Microsoft plans to spend a record $30 billion in the current quarter, reflecting growing confidence in its Azure cloud business. Alphabet has also adjusted its spending forecast upwards by $10 billion to $85 billion this year, showcasing commitment to AI development.
Microsoft revealed its Azure sales surpass $75 billion, with significant user engagement in its AI tools, reinforcing expectations for continued growth.
