Big Tech doubles down on AI, $200 billion gamble raises concerns on Wall Street

Big Tech invests $200 billion in AI, raising Wall Street's concerns.

: Major tech firms like Amazon, Microsoft, Meta, and Alphabet are investing $200 billion in AI this year. Amazon alone is set to spend $75 billion, focusing on AI as a major opportunity. The heavy investments have stirred mixed reactions on Wall Street, worrying investors about delayed returns. While Amazon and Alphabet saw stock rises, Meta and Microsoft faced declines over spending concerns.

Tech giants Amazon, Microsoft, Meta, and Alphabet are channeling a collective $200 billion into AI investments in 2024, marking an unprecedented financial commitment by these companies. Amazon leads this considerable spending, with CEO Andy Jassy viewing AI as a transformative chance, allocating $75 billion despite analysts recognizing these levels as staggering.

Other companies like Meta are committing around $40 billion towards AI, with a focus on language models and forward-looking tech. Alphabet has also upped its capital expenditures significantly, and Microsoft increased its AI outlays by 50% in a quarter, although it struggles with data center limits.

These expenditures evoke varied responses from Wall Street, as Amazon and Alphabet's earnings exceeded expectations thanks in part to cloud service growth. In contrast, investor worry surrounds companies like Meta and Microsoft due to their expansive spending plans and modest cloud revenue forecasts.

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