Big Tech AI spending surges

Amazon, Alphabet, Meta, and Microsoft reported first-quarter results, revealing a massive spending race to build AI infrastructure.

While Alphabet saw profits surge due to cloud demand, Meta's stock tumbled after it significantly raised its capital expenditure forecast to as much as $145 billion.

Microsoft also projected a significant increase in spending to $190 billion to secure the memory chips and data center capacity needed for its Copilot tools.

Investors remain divided on whether these astronomical investments will deliver the long-term returns promised by the AI revolution.