Big Tech keeps spending more on AI and the returns are rising too. Investors are happy about these investments in AI.
AI drives internet search, digital advertising and cloud computing. It generates more revenues for Microsoft, Facebook and Google. There are capacity shortages, and Microsoft and Google have decided to spend more to meet the AI demand. AI is emerging as a primary growth engine. Of course, monetization of AI is still in its early days.
Amazon is the largest cloud provider. There are uncertainties on account of tariffs, but the technology demand is shielding it from such uncertainties. Google and Facebook too are doing capital investments and will do so in foreseeable future.
Microsoft shares show an upward trend. The market capitalization may cross $ 4 trillion. This milestone has been reached by only Nvidia — the chip making company. Facebook shares have risen too, reaching a market value of $ 1.75 trillion. Azure cloud computing business shows growing returns on its massive AI bets. Google also beats revenue expectations. Microsoft has Copilot user base of 100 million. Around 800 million customers use AI tools prepared by Microsoft. Microsoft more than justifies its spending on AI.
Gemini has AI assistant app has more than 450 million monthly active users. ChatGPT has weekly 500 million active users.
The race for AI is intensifying in Silicon Valley.
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