Big Tech's AI Spending Soars Amid Investor Anxiety

Amazon, Microsoft, Alphabet, and Meta are set to invest over $720 billion this year in AI data centers, despite doubts about profitability. Wall Street reacted negatively to these spending plans, sparking a selloff. Alphabet's stock plummeted after it reported lowered ad revenue from its Search business. Microsoft’s capital expenditures fell due to external delays. Meanwhile, Anthropic faces substantial losses despite impressive revenue growth.