Big Tech continues to cultivate billions into AI. Will the revenue continue?
“I'm very seriously thinking this is a huge amount of capital,” Mark Zuckerberg told analysts on Wednesday after suggesting that Meta had doubled quarterly capital expenditures for a year ago, potentially reaching $100 billion in 2026.
Google's Cash Cow of Search has also proven resilient, with the company's cover increasing its own capital spending plan to $85 billion a year. Same as Microsoft. Its market value has reached $4 trillion, turning its strong revenues over. (Executives recognize that Azure is the first to disclose revenue from their cloud business, and that the company must prove that it can afford to make huge investments.)
The big question is whether meta, a daily consumer whose users are looking for entertainment, finds it difficult to translate huge AI spending into sustainable profits than business-centric players like Microsoft. Zuckerberg's bet is that AI generates cheaper, better, more targeted ads.
