"If you blinked, you might have missed it. Earnings season hit Big Tech, and there's a lot to unpack. (And a lot of AI spending going on.) Five of the world's most important companies provided updates on their businesses over the course of two days. To quickly catch you up on how things shook out, here's a rundown on the main takeaways from Alphabet, Amazon, Apple, Meta, and Microsoft."
"Alphabet: Hot on ChatGPT's heels. Look out, OpenAI. Here comes Gemini. Google's chatbot now has 650 million monthly active users. That's about a 44% jump from just a few months ago. Sure, it still trails the behemoth that is ChatGPT, which has a staggering . But the growth shows Gemini is building momentum, and especially with the youths. Josh Woodward, the VP of Google Labs who leads the Gemini app, told BI's Hugh Langley there has been a big demographic shift to younger users."
"Microsoft: Spend, spend, spend. Spending big on AI infrastructure was already a massive theme in tech heading into earnings, and Microsoft certainly didn't stray from the path. An internal memo from CFO Amy Hood seen by BI's Ashley Stewart highlighted the company's record $34.9 billion infrastructure spending to meet AI demand this quarter. Investors aren't necessarily buying it, as concerns are growing about whether all this money will lead to some ROI."
Earnings season for major technology companies concluded with Alphabet, Amazon, Apple, Meta, and Microsoft reporting updates. Alphabet's Gemini chatbot reached 650 million monthly active users, a roughly 44% increase over a few months, driven by viral features and younger demographics. Microsoft reported record infrastructure spending of $34.9 billion this quarter to support AI demand. Investors expressed skepticism about whether such elevated capital expenditures will translate into satisfactory returns. The cycle of heavy AI investment and rapid product adoption is reshaping priorities across large tech firms and influencing broader corporate spending decisions.
Read at Business Insider
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