WSJ What’s News Meta’s AI Spending Pays Off
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Jan 29, 2026 
Altaf Kassam, senior investment strategist at State Street, offers a market-focused take on AI spending and chip demand. He contrasts Meta’s AI-driven ad gains with slower cloud results at rivals. He explains why markets reward near-term AI monetization, how consumers are responding to AI ads, and when heavy AI spending alarms investors.
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Broad Buying Powers Metal Rally
- Gold and other metals are rallying due to central-bank buying, lower rates, ETF access, and even crypto-linked purchases.
- Multiple investor types, including Tether, are driving stronger demand for precious metals.
Monetization Drives Market Reactions
- Meta showed monetization of AI spending through a jump in digital-ad revenue while Microsoft did not show similar immediate returns.
- Markets rewarded Meta and punished Microsoft based on who demonstrated near-term monetization of AI investments.
Investor Patience Is Wearing Thin
- Investors are growing impatient with front-loaded AI spending and want proof it delivers now.
- Advertising is one of the fastest ways to convert AI investment into revenue, so companies showing ad monetization get rewarded.