Big Tech’s $660B AI Bet Triggers $900B Market Selloff
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BTCCSquare news:
Amazon, Microsoft, and Google lost $900 billion in combined market value last week as investors balked at aggressive AI spending plans. Amazon's projected $200 billion capex—$50 billion above estimates—drove an 11% stock drop despite 24% AWS revenue growth. Microsoft fell 18% after revealing a 66% surge in data center spending and that 45% of its $625 billion cloud backlog depends on OpenAI.
"The onus is on Microsoft and Amazon to prove out the attractive returns on all the spending," said AllianceBernstein analyst Anna Nunoo. Google shares also declined despite earnings beats, signaling Wall Street's skepticism about unchecked tech investment cycles.
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