Artificial Intelligence

Ameican Market News -  Building advanced AI takes staggering amounts of computing power. This year, Microsoft, Alphabet, Amazon and Meta are expected to spend roughly $735 billion to $750 billion combined, much of it on the data centers, chips, energy and network capacity the AI buildout demands.

The question investors are starting to ask: will AI revenue ever justify that spending? If earnings don't keep pace, today's premium valuations could come under pressure. And because a handful of tech giants now make up a large share of the S&P 500, that pressure wouldn't stay contained to tech.