AI Spending Delivers Mixed Results to Stocks - bloomberg-technology Recap
Podcast: bloomberg-technology
Published: 2026-01-29
Duration: 44 minutes
Guests: Gabriella Borges, Schweder Cajuria, Tasha Kini, Bill McDermott, Christian Garrett, Delian Asparouhov, Riley Griffin
Summary
Meta, Microsoft, and Tesla have all increased their capital expenditures in AI, leading to varied stock performance. Meanwhile, Amazon faces scrutiny over AI training data containing child sexual abuse material.
What Happened
Meta, Microsoft, and Tesla have all reported increased capital expenditures focused on AI, with mixed outcomes for their stocks. Meta is planning to spend $135 billion on capital expenditures this year, largely due to growth in its advertising business. Despite concerns, Meta's stock experienced its largest jump since July, easing Wall Street's worries about its AI spending. Microsoft's earnings exceeded expectations by $1.5 billion, largely thanks to the growth of its Azure cloud unit, which saw a 38% increase. Additionally, Microsoft's investment in OpenAI bolstered its net income, adding $1.02 per share to its earnings. Tesla announced a new Terrafab build-out to resolve chip production constraints and a commitment to double its Robotaxi fleet every month, aiming to surpass Waymo's fleet shortly. Apple's performance continues to lag among tech giants, with shares down 10% since December. The company is launching its iPhone 17 Pro Max in China but remains cautious about AI investments, fearing it could be a bubble. Meanwhile, Amazon has reported a vast amount of child sexual abuse material in its AI training data, raising concerns about data sourcing and hindering law enforcement investigations.
Key Insights
- Meta plans to spend $135 billion on capital expenditures this year, primarily driven by its advertising business, which has led to a significant stock price increase, the largest since July.
- Microsoft's Azure cloud unit experienced a 38% growth, contributing to earnings that exceeded expectations by $1.5 billion, and its investment in OpenAI added $1.02 per share to its earnings.
- Tesla aims to double its Robotaxi fleet every month, with plans to soon surpass Waymo's fleet, and is addressing chip production constraints through a new Terrafab build-out.
- Amazon has identified a significant amount of child sexual abuse material within its AI training data, raising concerns about data sourcing and complicating law enforcement investigations.