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Big Tech AI Race: Who's Winning?
27 Jan
Summary
- Microsoft and Meta face AI growth pressure ahead of earnings.
- Companies to boost AI spending by 30% to over $500 billion.
- Alphabet gains AI lead with Gemini 3 and Apple Siri deal.
Microsoft and Meta are set to report earnings this week, facing intense investor scrutiny over their substantial artificial intelligence investments. These tech giants, alongside Amazon, are expected to collectively boost their AI expenditures by 30%, surpassing $500 billion in the coming year. This unprecedented outlay intensifies the focus on whether their AI strategies are delivering tangible growth.
Alphabet appears to be leading this high-stakes race, with its stock experiencing a significant surge. This positive momentum is attributed to the successful launch of its Gemini 3 model and a new partnership to power Apple's Siri. In contrast, both Microsoft and Meta saw their stock prices decline in the last quarter of 2025, signaling investor concerns about their AI progress.
Despite the hype, some doubts persist regarding the immediate real-world benefits of AI adoption for businesses. A recent survey indicated that over half of surveyed CEOs have not yet realized revenue or cost benefits from their AI investments. Microsoft itself is grappling with AI capacity constraints expected to last until at least June, alongside rising memory chip prices impacting its personal computing division.
