Big tech just delivered its quarterly report card — and we got a very clear signal of what’s coming next.
The main theme from earnings season? Robust revenue growth paired with a continued commitment to AI spending. Alphabet delivered its first-ever $100 billion quarter, Amazon posted its strongest cloud growth in three years, and Microsoft’s revenue climbed 18% to nearly $78 billion.
The spending spree continues. Strong financial results have reinforced — rather than tempered — most companies’ appetite for AI investment. Large tech companies are reportedly set to spend $400 billion on AI-related investments this year on initiatives like training models, developing new tools, and building infrastructure. Some companies say it’s still not enough to meet demand.
Early ROI on AI spending. This earnings season also helped answer a major question: Are companies actually making money from AI? So far, it seems like a yes. Google CFO Anat Ashkenazi stated that the tech giant is “generating billions of dollars from AI,” while Amazon CEO Andy Jassy noted that AI “drives meaningful improvements in every corner of our business.”
For now, the message is clear. The AI arms race shows no sign of slowing down. Companies are continuing to invest aggressively and have strong conviction that building AI infrastructure today will determine positioning for the next decade. Wall Street, for its part, appears willing to support this bet — at least for now.