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Fri, 31 Jul 2026

Fri, 31 Jul 2026 Three things we learned about AI from Big Tech earnings

Billions of dollars are being poured into a new wave of AI technology. But will it pay off?

* Tech giants Meta, Amazon, Google, Microsoft, and Apple reported their quarterly financial results, with all planning to continue massive spending on artificial intelligence (AI).
* Investors expressed skepticism over the companies' AI investments, citing a need for tangible results, as $1tn has been poured into related areas such as computer chips, data centers, and staff.
* Despite this, every major tech company has launched a consumer-facing AI chatbot in response to OpenAI's ChatGPT, but these tools have not yet generated significant revenue.
* Meta and Google reported some of their lowest free cash flow figures ever, with both companies spending more than they earned from AI-related expenses.
* Meta's Reality Labs lost nearly $9bn in the first half of this year, while Google's Alphabet reported negative free cash flow for the first time in its history as a public company.
* Microsoft and Amazon saw their shares rise despite plans to spend heavily on AI, with Microsoft showing strong revenue growth and adoption of its core AI tool.
* Apple announced that it will charge users who wish to make heavier use of its updated Siri AI voice assistant, set to be released soon.