Big Tech investors to gauge payoff as AI spending set to hit $600 billion
Big Tech companies, including Alphabet, Microsoft, Meta, and Amazon, are expected to spend around $600 billion on AI this year, with investors scrutinizing their quarterly results to gauge the payoff. The companies' cloud computing and advertising growth will be closely watched to justify the massive AI spending.
Big Tech companies are on track to spend around $600 billion on AI this year. Quarterly results from Alphabet, Microsoft, Meta, and Amazon will be closely watched to gauge if the spending has driven enough growth in cloud computing and advertising. Amazon Web Services, Microsoft Azure, and Google Cloud are expected to see growth of 25%, 40%, and 50.1%, respectively. Microsoft faces strong scrutiny as its stock has lagged rivals and investors fear it has failed to convert its customers into paying Copilot users. The company's landmark tie-up with OpenAI has also lost its exclusivity, with OpenAI now free to work with competing cloud providers. Microsoft's overall revenue is expected to rise 16.2% to $81.39 billion.
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