•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
There is no official leaderboard for AI spending in Big Tech, but companies are competing as if one exists. Tech giants say their intent to pour billions of dollars into AI bets remains unwavering, with four companies and more than $12 trillion in combined market capitalization reporting in a single day.
Microsoft said it plans to spend $190 billion in capital expenditures this year, moving ahead of peers in the latest round of disclosures.
Microsoft’s approach reflects a broader message from executives: the benefits of large investments take time to materialize. CEO Andy Jassy said it takes time for the value of investments to show up, while acknowledging short-term pressure.
He added that when capex growth meaningfully outpaces revenue growth, free cash flow can be challenged in the early years.
Amazon reported that AWS enjoyed its best growth since 2022, with sales jumping 28% last quarter.
Amazon also signaled potential expansion beyond its internal AI stack, saying it could start selling its Trainium AI chips to external customers within the next two years.
Amazon did not change its capital expenditure outlook; last quarter it said it planned to spend $200 billion this year. However, the company reported a noticeable decline in free cash flow, described as a 95% drop compared with the same quarter last year.
CEO Andy Jassy’s comments about early-year free cash flow pressure were echoed in the broader context of capex outpacing revenue growth.
Google said demand for AI plans is helping drive subscription growth. CFO Anat Ashkenazi said Google One subscriptions benefited from increased demand for AI offerings.
Google reported that its subscriptions, platforms, and devices business grew 19%, and it said it has 350 million paying subscribers across its services.
Google’s advertising business remains central to its strategy. Chief business officer Philipp Schindler said the company is open to including ads on its Gemini app, adding that if done well, ads can be valuable.
Meta reiterated that its capital expenditures will grow to keep pace in the AI race. Meta CEO Mark Zuckerberg told investors again that capex spending will increase.
Meta CFO Susan Li said the company uses an ROI-based process to ensure it funds initiatives expected to drive growth in future years.
Li also addressed staffing needs, saying she does not know what Meta’s ideal headcount looks like given rapid changes in AI capabilities. Her comments came despite Meta’s commitment to cut 10% of its workforce next month.
Microsoft said it is continuing to invest in AI while also preparing for changes in staffing. CFO Amy Hood expects to reduce employee headcount in coming quarters.
Hood said Microsoft will continue evolving how it operates to increase pace and agility, and therefore expects headcount to decrease year over year.
The expectation aligns with an internal memo described as viewed by BI’s Ashley Stewart, in which Hood praised workers’ increased pace and tighter, more accountable squads.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
