Microsoft, Meta to spend $70 billion each on AI
Microsoft and Meta are about to pour $70 billion apiece into artificial intelligence in each company's current fiscal year.
Most of this cash is going into building up their tech muscle—think data centers and computing power—to keep pace with rivals like Alphabet (Google) and Amazon.
It's a big leap from what they've spent before, showing just how much AI is driving the next wave of tech.
Tech titans' bets are already paying off
Microsoft plans to spend nearly $18 billion this quarter alone—a 30% jump from last year—and expects sales to rise by 14%.
Meta's doubling its spending to $16.4 billion, aiming for a 15% revenue boost.
These bets are already helping: Microsoft's cloud business is growing fast, while Meta's using AI for smarter ads and new gadgets.
Alphabet's capex forecast jump adds pressure
Alphabet just raised its capex forecast to a whopping $85 billion, making the race even tighter.
As these giants invest more in things like smart glasses and better ad targeting, they're all hoping AI will unlock new ways to make money.
Investors remain cautious in AI arms race
Even with strong growth numbers, investors aren't totally sold yet.
They're watching closely to see if these massive investments will actually pay off long-term or if it's just a pricey gamble in the AI arms race.