The Big Story
Massive AI spending shows early payoff for Big Tech
The billions of dollars Big Tech has poured into artificial intelligence (AI) development seem to be paying off as companies show they can produce results, earning Wall Street’s stamp of approval for now.
© Kin Cheung, Associated Press
After months of questions about whether major tech firms were overshooting AI spending, Google, Microsoft and Meta are taking a victory lap after outperforming investors’ lofty expectations.
“It’s showing it’s starting to pay off and companies are doubling down,” Wedbush Securities analyst Dan Ives said, adding, “It puts fuel in the engine for tech to rally more in the second half [of the year].”
Major tech firms promised eye-popping investments in AI heading into 2025, as they pushed to