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Meta, Microsoft Confront AI Spending Concerns Head-On
['Brian Boyle']
The Daily Upside
Both Meta and Microsoft held after-the-bell earnings calls (for Meta’s fourth quarter and Microsoft’s second).
Both have faced recent shareholder skepticism about the scale of investment in AI-powered data centers and their seemingly far-off returns.
The Windows-maker said its capital spending in the most recent quarter reached $37.5 billion, about $3 billion higher than anticipated and a staggering 66% year-over-year increase.
Translation: Fret about overspending and an AI bubble all you want, neither of these giants is tapping the data-center-buildout brakes yet.
Microsoft also conceded that 45% of that figure is expected from its pseudo-sibling OpenAI, and that has analysts a little worried.