Thu, 30 Oct 2025

Thu, 30 Oct 2025 Tech giants are spending big on AI in rush to dominate the boom

Earnings reports from Meta, Alphabet and Microsoft reaffirm that giants are ramping up their spending on artificial intelligence, as they rush to reap the benefits of an AI boom.
Major tech companies such as Meta, Alphabet (Google), and Microsoft are significantly increasing their spending on artificial intelligence (AI). Their earnings reports show that they're investing heavily in areas like data centers, chips, and cloud computing. Meta has raised its capital expenditure forecast to $70-72 billion for 2025, with growth expected to be even higher in 2026. Alphabet's forecast was also revised upwards to $91-93 billion for this year. The companies' focus on AI is driven by the potential for new products and services, as well as improving their existing businesses through AI-driven efficiency gains. Mark Zuckerberg argued that accelerating investment in AI would bring significant benefits, while Satya Nadella emphasized Microsoft's commitment to meeting the "massive opportunity" of AI with increased spending. The massive investments have contributed to a surge in the companies' stock prices, but there are concerns about whether they're delivering sufficient returns on these investments. Despite this, experts say that strong AI-related business investments are supporting economic growth in the US. In related news, Microsoft reported higher quarterly profits and Alphabet saw a 33% rise in profit. Meta's revenue increased, but its profits fell due to a tax charge. The companies' spending on AI has also led to concerns about job displacement, with some arguing that recent layoffs are evidence of AI's impact on employment.
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