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Top executives from Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) defended their significant expenditures on artificial intelligence (AI) development. The CEOs addressed the concern that currently, there is an imbalance with too much capital being allocated to AI development and not enough actual usage of the technology. Microsoft’s Chief Financial Officer, Amy Hood, stated that the company’s capital spending for the current quarter and the upcoming one would hold steady at approximately $22.6 billion, mirroring the amount spent in the second quarter.
Despite the substantial ongoing investment, there are indications that these tech giants are preparing to adjust their approach. Hood mentioned that while Microsoft plans to continue investing to meet strong demand signals through fiscal 2026, the growth rate of their investment is projected to be lower than in fiscal 2025, which concludes in June. This suggests a more measured approach to AI spending in the future, aligning with the company’s expectations of demand and consumption patterns.
The discussion from these CEOs comes at a time when AI is increasingly seen as a critical area for technological advancement and competition among leading tech companies. Both Microsoft and Meta have been at the forefront of AI research and development, investing heavily in an effort to harness the potential of AI for various applications, from cloud computing to social media.
The commitment to AI by these companies underscores the importance they place on the technology as a driver of future growth and innovation. With Microsoft’s CFO outlining the company’s spending plans, it’s clear that while they are aware of the need to balance expenditure with consumption, they remain steadfast in their belief in the long-term value of AI investments.
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