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Tech giants’ $750B AI bet meets slowing core growth

Google and Amazon are seeing advertising sales and e-commerce growth decelerate even as they hold their capital expenditure guidance and press ahead with large-scale AI spending plans. Shares of Alphabet, Amazon and Meta fell after their earnings reports, with investors questioning how the AI investments will pay off. The companies have kept their capex guidance unchanged despite the selloff.

Original source

AI take

The tension here is not the size of the AI commitment but the fact that it is being held steady while the cash engines funding it — advertising and e-commerce — are losing momentum. That combination leaves less room for error if returns on the buildout arrive later than expected, and equity reaction suggests the market is now pricing patience rather than vision. The read-through extends beyond these three names to the wider AI supply chain and to any RWA or digital-asset projects leaning on hyperscaler demand as an anchor. Whether capex guidance stays fixed through the next reporting cycle is the open question.

Generated by AI for reference only.

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