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As AI spending soars, can China’s tech giants deliver long-term profits?
['Ben Jiang']
South China Morning Post
As US tech giants face growing market scrutiny over their swelling artificial intelligence budgets, China’s top technology firms are confronting a similar reckoning: proving that billions of dollars spent on AI infrastructure will yield sustainable profits.
Here is a run down on how Chinese tech giants are navigating the AI monetisation challenge.
Why are global investors nervous about ‘big tech’ AI spending?
Despite beating revenue expectations with US$60.8 billion, Meta’s rising AI spending and a drop in free cash flow alarmed investors.
Chinese tech powerhouses and frontier AI labs are locked in a parallel race, escalating capital expenditure to match domestic rivals and US competitors.