Big Tech's AI Spending Faces Investor Scrutiny

seekingalpha.com —

Big Tech's AI spending faces a market test as Alphabet's shares fell 10% after an earnings miss, with capex at $51.4 billion and free cash flow swinging to a $9.1 billion deficit. Microsoft unveiled the largest voluntary buyout in Big Tech history to cut a quarter of its workforce, aiming to fund AI expenditures, while Oracle rebounded 10% after announcing positive free cash flow targets and fundraising caps at its Analyst Day. Meta's $95 billion stock sale and Anthropic's IPO filing highlighted rising cash concerns, with investors demanding realistic monetization paths as companies balance AI spending levels.


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