en.Wedoany.com Reported - Combined spending by major US tech companies Alphabet, Microsoft, Meta, and Amazon in the field of artificial intelligence is projected to reach approximately $600 billion this year. Investors are closely watching the upcoming quarterly earnings reports from these companies to assess whether AI investments are delivering substantive returns.

According to Visible Alpha and LSEG data, cloud business growth accelerated in the January-March quarter: Amazon AWS likely grew 25%, Microsoft Azure is expected to post 40% growth, and Google Cloud 50.1%. In terms of overall revenue, Alphabet is expected to grow 18.7% to $107.06 billion, Amazon 13.9% to $177.3 billion, and Microsoft 16.2% to $81.39 billion. Meta sales may surge 31% to $55.45 billion, its fastest pace in four years, as its AI investments improved its advertising business.

Microsoft faces more intense scrutiny, with its stock underperforming during the January-March period and only 3.3% of its enterprise customers subscribing to its Copilot AI assistant. Its partnership with OpenAI has also lost exclusivity, with OpenAI now able to collaborate with other cloud providers. Melissa Otto, Head of Research at S&P Global, stated: "The company must explain why its business model will not be significantly disrupted in AI."

Joe Maginot, Portfolio Manager at Madison Investments, noted that investors are seeking returns on capital expenditures, which are consuming a substantial amount of operating cash flow, signaling that the economics of the business are changing.

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