Two major technology companies reported their AI expenditures on the same day with very different results. Microsoft’s investment in AI was reflected positively, contributing to a rise in its cloud revenues. On the other hand, Meta’s AI spending resulted in a cash flow deficit. Meta managed to increase its revenue by 28% to $60.8 billion, surpassing market expectations, according to CNBC. Despite this growth, Meta’s profits declined by 14% to $15.8 billion, its earnings per share fell short of predictions, and its stock price dropped approximately 5%.
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