Big Tech's AI costs draw attention
Driving the news: “Given the exorbitant costs associated with the development, hosting and serving of AI products, many investors are concerned about the potential for [fiscal 2024] commentary regarding a material increase,” says Jefferies research analyst Brent Thill in a preview of the company's latest earnings slated for tomorrow afternoon.
State of play: AI announcements alone may not be enough to impress Wall Street, which has already sent names in the sector soaring.
- Since announcing a $10 billion multiyear investment in OpenAI in January, Microsoft has seen its own shares rise over 44%.
- Google parent company Alphabet, which reports earnings alongside Microsoft tomorrow after the bell, is up 36%.
- Meta, which reports Wednesday, has seen its stock pop 133% year to date, while Apple is up 54% and Amazon is up 50%.