PYMNTS.com February 9, 2025
America’s tech giants could reportedly spend more than $320 billion on artificial intelligence (AI) this year.
AI investments by the four biggest tech firms — Amazon, Google, Meta and Microsoft — jumped 63% last year, and will jump again for 2025, the Financial Times (FT) reported Friday (Feb. 7).
However, the report added, investors are concerned that upping spending on AI without seeing a corresponding uptick in revenue will rob companies of capital that could otherwise go to buybacks and dividends, while hamstringing non-AI business lines.
“The unbridled enthusiasm across the entire ‘Magnificent Seven’ has been replaced by pockets of skepticism and created some ‘show me’ situations,” Jim Tierney, head of the concentrated U.S. growth fund at AllianceBernstein, told the...
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