Tech Daily Report

Big Tech's AI spending spree comes with a catch

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 34 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 48%
  • Publisher: 63%

Michael Farr News

Capital Expenditures,Microsoft,Tech Companies

Big Tech aims to harvest new markets with these new spending sprees. But you'll have to trust the companies the investment is worth it.

The message from Big Tech executives is clear: Buckle up, we're going to spend a lot more money on artificial intelligence. Amazon "The biggest takeaway on the huge AI capex spends is that the megacaps are not content to harvest their current markets, and all have confidence in their ability to expand their revenue base," Farr said.and cost-cutting initiatives, a drastic jump in capex can be hard to accept.

Other factors are at play, however. Leading up to earnings, Meta's stock was on a tear, showering investors with massive appreciation. As Baird strategist Ted Mortonson, the positioning of the stock, as compared to the middling performance of Alphabet heading into its own earnings, set Meta up for a fall.

Whereas Microsoft, Amazon, and Alphabet can make money from their AI computing infrastructure and by applying AI to their own products, Meta doesn't have an Azure, Amazon Web Services , or Google Cloud Platform to lean on. Meta has its ad empire, of course, but Llama, its large language model, is open source, making monetization less certain.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in TECHNOLOGY

Technology Technology Latest News, Technology Technology Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Amazon's AI growth story: Big Tech's race for AI dominanceAmazon (AMZN) posted its first quarter report on Tuesday, revealing an AI-driven boost in the company's cloud computing growth. Multiple companies...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

AI Hardware Stocks Get Pummeled Even as Big Tech Keeps Spending(Bloomberg) -- The good news for makers of semiconductors and other artificial intelligence computing hardware: tech giants plan to keep spending heavily...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

AI Hardware Stocks Get Pummeled Even as Big Tech Keeps SpendingThe good news for makers of semiconductors and other artificial intelligence computing hardware: tech giants plan to keep spending heavily. The bad news is that investors are harder to impress this earnings season.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

The AI trade is back, as confidence in Big Tech surgesStandout earnings results from Microsoft and Alphabet are drawing investors' attention back to AI.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »