Microsoft, Meta under investor pressure for massive AI spending
Investors are raising concerns over surging capital expenditures by Microsoft and Meta, as both companies continue pouring billions into AI infrastructure. Microsoft reported $14 billion in capex last quarter, up 60% year-over-year, while Meta expects 2025 AI spending to hit $40 billion. The rapid pace of investment reflects fierce competition in building AI capabilities but has sparked questions over sustainability and return on investment.
The AI arms race is intensifying, and investor scrutiny could reshape how tech giants balance innovation with financial discipline.
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