Big Tech firms gain $350B in new funds as AI rewards impress investors
The post Big Tech firms gain $350B in new funds as AI rewards impress investors appeared on BitcoinEthereumNews.com. Big Tech has been able to soothe investors’ fears about its high spending on artificial intelligence, partly by announcing quarterly results that beat expectations and showcasing the fruits of those AI investments. Alphabet, Meta, and Microsoft were among the biggest winners, adding more than $350 billion in market value after reporting double-digit growth in revenue and net income. Microsoft surged past $4 trillion in market cap, becoming the second company to reach that milestone after Nvidia. Meta’s shares rose 11%, pushing its valuation close to $2 trillion. The tech firms’ robust performances were largely driven by growth in Google and Microsoft’s cloud computing divisions and improved advertising margins at Meta. These results were used to justify yet another round of heavy investment in AI infrastructure. Together with Amazon, the trio is on track to spend more than $350 billion this year on data centers and other AI-related infrastructure, with forecasts suggesting that figure could exceed $400 billion by 2026. Microsoft and Meta lead in AI infrastructure race Microsoft CEO Satya Nadella announced plans to invest $120 billion over the next year to scale up data center capacity faster than any competitor. Meanwhile, Meta is preparing to spend $105 billion next year as it begins building a new data center in Louisiana—dubbed Hyperion—that will span an area the size of Manhattan. Mark Zuckerberg is also reportedly offering engineers pay packages in the hundreds of millions of dollars to join his new “superintelligence” AI lab. In previous quarters, investors reacted nervously to the sheer scale of spending, worried that the returns wouldn’t materialize. This time, however, sentiment appears to have shifted. Investors have taken the increased capital expenditure in stride, encouraged by signs of strong demand for AI computing power and a growing backlog of customer orders. Still, some voices in the…
The post Big Tech firms gain $350B in new funds as AI rewards impress investors appeared on BitcoinEthereumNews.com.
Big Tech has been able to soothe investors’ fears about its high spending on artificial intelligence, partly by announcing quarterly results that beat expectations and showcasing the fruits of those AI investments. Alphabet, Meta, and Microsoft were among the biggest winners, adding more than $350 billion in market value after reporting double-digit growth in revenue and net income. Microsoft surged past $4 trillion in market cap, becoming the second company to reach that milestone after Nvidia. Meta’s shares rose 11%, pushing its valuation close to $2 trillion. The tech firms’ robust performances were largely driven by growth in Google and Microsoft’s cloud computing divisions and improved advertising margins at Meta. These results were used to justify yet another round of heavy investment in AI infrastructure. Together with Amazon, the trio is on track to spend more than $350 billion this year on data centers and other AI-related infrastructure, with forecasts suggesting that figure could exceed $400 billion by 2026. Microsoft and Meta lead in AI infrastructure race Microsoft CEO Satya Nadella announced plans to invest $120 billion over the next year to scale up data center capacity faster than any competitor. Meanwhile, Meta is preparing to spend $105 billion next year as it begins building a new data center in Louisiana—dubbed Hyperion—that will span an area the size of Manhattan. Mark Zuckerberg is also reportedly offering engineers pay packages in the hundreds of millions of dollars to join his new “superintelligence” AI lab. In previous quarters, investors reacted nervously to the sheer scale of spending, worried that the returns wouldn’t materialize. This time, however, sentiment appears to have shifted. Investors have taken the increased capital expenditure in stride, encouraged by signs of strong demand for AI computing power and a growing backlog of customer orders. Still, some voices in the…
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