Big Tech AI spending hits $700B

A massive wave of capital expenditure is sweeping through the technology sector as firms race to build out artificial intelligence infrastructure.

Alphabet, Amazon, and Microsoft have reported significant cloud revenue gains driven by AI demand, justifying their combined $700 billion spending target for the year.

However, investors remain divided, with some concerned about the long-term profitability of these intensive investments.

While Google and Amazon saw stock gains following their reports, Meta faced a sharp decline as its AI costs appeared to outpace immediate returns.