The news: Big Tech is pouring unprecedented sums into AI and cloud expansion, betting on a future where AI transforms business. But revenue growth isn’t keeping pace and investor patience is running thin.
Facing capacity constraints, rising costs, and growing competition, the AI race is more expensive—and uncertain—than ever.
Why it’s worth watching: Big Tech has committed hundreds of billions of dollars to AI and the cloud, but the ROI is mixed as more affordable open-source AI options like China’s DeepSeek emerge.