Post by : Badri Ariffin

Alphabet, Microsoft and Meta each announced on Wednesday they would step up capital investments in artificial intelligence and data‑centre capacity. Yet despite the collective push into AI infrastructure, it was Alphabet that clearly gained investor approval.

Shares of Google’s parent climbed more than 7% after the disclosures, while Microsoft dipped roughly 3% and Meta fell about 7% in premarket trading — a market reaction that highlighted differing investor views on the spending surge.

Alphabet spent $23.95 billion on capital expenditures in the September quarter, roughly half of its operating cash flow. By comparison, Meta’s capex equaled 64.6% of its operating cash flow, and Microsoft’s capex reached 77.5% of its operating cash flow.

That relative balance has reassured investors concerned about shrinking free cash flow as firms pour billions into AI-related infrastructure. The need for greater computing power is intensifying the race to secure future leadership in artificial intelligence.

Meta’s CEO Mark Zuckerberg acknowledged the company may incur short-term losses from heavy AI investment but argued the long-term returns should justify the expense. Microsoft is leaning on its cloud platform and AI partnerships to drive growth even as costs rise.

For now, Alphabet stands out as the most financially steady player in the AI spending contest. With consistent revenue growth and substantial cash reserves, the company appears better placed to absorb the large costs of building AI capability.

Investors are now turning their attention to Amazon’s upcoming quarterly results to see if another major AI wager will calm markets — or add to concerns.

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