reported results<\/a>. Together, the four companies remain at the center of a global AI infrastructure buildout expected to run into the trillions of dollars.<\/p>\nBoth Alphabet and Meta added another $10 billion to their capital spending plans, pushing the group\u2019s combined outlay to as much as $725 billion for 2026. The scale of that investment continues to draw scrutiny, with investors focused on whether it is translating into clear financial returns.<\/p>\n
Alphabet pointed to strong performance in its cloud division as evidence of traction. The unit generated $20 billion in revenue last quarter, ahead of expectations of $18.4 billion. Growth accelerated as demand for AI-driven tools and infrastructure increased.<\/p>\n
\u201cOur AI models have great momentum,\u201d CEO Sundar Pichai said on a call with analysts. \u201cWe are bringing helpful AI into the hands of billions of people every day through our products and platforms.\u201d<\/p>\n
<\/p>\n
The company\u2019s backlog \u2014 contracted business yet to be recognized as revenue \u2014 nearly doubled quarter over quarter to more than $460 billion. Consumer-facing AI products also performed strongly, with Pichai describing the period as the best yet for services such as the Gemini app.<\/p>\n
Markets responded positively. Alphabet shares rose 6.6% in late trading, outperforming peers, while futures tied to the Nasdaq 100 Index moved higher.<\/p>\n
Meta\u2019s update drew a more cautious response. The stock fell over 6% after the company lifted its full-year capital expenditure outlook to as much as $145 billion, partly due to higher component costs.<\/p>\n
While other tech firms are also increasing spending, Meta\u2019s returns remain less visible. The company lacks a cloud business comparable to rivals and has yet to build similar momentum around its consumer AI offerings.<\/p>\n
\u201cMeta\u2019s standalone app hasn\u2019t had the amount of engagement,\u201d Mandeep Singh noted.<\/p>\n
CEO Mark Zuckerberg defended the strategy but offered limited specifics. He acknowledged the company does not have \u201ca very precise plan\u201d for how each AI product will evolve, adding that his responses might be \u201cunfulfilling\u201d as development continues.<\/p>\n
Industry observers say the uncertainty reflects the scale of the opportunity. \u201cWith the potential payoff of AI leadership seemingly so high, the companies continue to make those bets,\u201d Lee Sustar said, pointing to the pressure on investors to weigh risks against long-term gains.<\/p>\n
Cloud growth at Amazon and Microsoft signals steady AI demand<\/h2>\n
At Amazon.com Inc., cloud revenue rose 28% year over year, its fastest pace since mid-2022. The performance is often seen as a proxy for enterprise AI adoption, given the role of its infrastructure in training and deploying models.<\/p>\n
Amazon has also benefited from its ties to leading AI developers, including OpenAI and Anthropic. Shares moved higher after reports that Anthropic is exploring a new funding round that could value the company at more than $900 billion.<\/p>\n
Microsoft Corp., another major cloud provider, signaled continued growth ahead. The company expects Azure revenue to increase by about 40% in the current quarter, with some acceleration later in the year.<\/p>\n
Still, adoption of its AI tools remains uneven. Paid subscriptions for its Copilot features reached 20 million, up from 15 million in the previous quarter, but only a small share of its overall Office user base.<\/p>\n
Investor reaction to Microsoft\u2019s results was subdued, with the stock edging lower in extended trading. Tyler Radke described the quarter as \u201csolid execution,\u201d though not yet a clear shift in growth momentum.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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