The world's largest technology companies updated investors this week on their finances. Amazon, Apple, Meta, Google and Microsoft all shared new details about their spending on artificial intelligence.
Each company is pouring huge amounts of money into AI. This includes computer chips, data centers and staff. The total spending across the industry is expected to top one trillion dollars.
Investors want to see results. They are asking for proof that this spending will pay off. That pressure caused several tech stocks to swing sharply this week.
AI Products Are Not Making Much Money Yet
Every major tech company now has a consumer AI chatbot. Meta has Meta AI. Google has Gemini. Amazon has Rufus. Apple relaunched Siri.
None of these tools are bringing in much direct revenue on their own. They remain costly to build and run.
Google and Meta reported some of their lowest free cash flow numbers ever. Free cash flow measures how much money is left after paying for operations and investments.
Google's parent company, Alphabet, spent more money than it earned this quarter. This is the first time that has happened since Alphabet became a public company.
Meta's free cash flow was just 784 million dollars on 61 billion dollars of revenue. That means it spent almost as much as it made.
Meta's Reality Labs division, which handles its AI work, lost close to 9 billion dollars in the first half of this year.
Investors Want Results, Not Promises
Meta's stock fell to its second lowest level in a year. This happened after chief executive Mark Zuckerberg talked about a new AI agent and a plan to sell AI tools to other companies.
Neither product exists yet in a way that could bring in money. Zuckerberg did not give a timeline for either one.
Despite this, Meta raised its planned AI spending. The company expects to spend more than 140 billion dollars on AI this year.
Microsoft had a different result. Its stock rose to a six month high. The company plans to spend close to 190 billion dollars on AI, but it also showed strong revenue growth from AI tools already in use.
One analyst said Microsoft is starting to show its AI spending can deliver returns.
Amazon's stock also rose, reaching its highest price in two months. This happened even though the company reported negative cash flow and plans to spend 220 billion dollars on AI this year.
Demand for new technology remains strong. Google said 950 million people now use Gemini at least once a month. That is three times the number from a year ago.
Apple said sales of the Mac, iPhone and iPad have been stronger than expected this year. The company warned that a shortage of computer chips could slow future sales.
Apple is preparing an updated version of Siri, built with help from Google's Gemini technology. Outgoing chief executive Tim Cook said the company plans to charge users who want more advanced Siri features, based on feedback from testing so far.
