FT News Briefing Big Tech investors question AI pay-off
Apr 29, 2024
Financial firms are reeling from new FTC rules banning non-compete agreements, sparking potential shifts in talent dynamics. Meanwhile, major Western banks in Russia have coughed up hundreds of millions in taxes to the Kremlin. In the energy sector, Turkey is eyeing a lucrative LNG deal with ExxonMobil. As for Big Tech, companies like Microsoft and Alphabet urge patience from investors regarding their AI investments, despite promising cloud-powered growth amid concerns about actual profitability.
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AI Payoff Uncertainty
- Tech investors are questioning when AI investments will yield substantial profits.
- Companies like Microsoft and Alphabet saw gains from cloud services, but clear profit from AI is yet to be seen.
Meta's AI Promise
- Meta's CEO, Mark Zuckerberg, declared Meta an AI company focused on future AI services.
- However, he didn't provide a timeline for profitability, leading to investor skepticism.
Microsoft's AI Growth
- Microsoft reported 7% growth in its Azure cloud services due to AI.
- This stems from Microsoft's deal with OpenAI, enabling customers to test AI within Azure's cloud.