Big tech companies increase AI spending

On July 30, 2026, the world’s largest technology companies – Microsoft, Meta, Google, Apple and Amazon – released their recent financial results. All confirmed they will continue investing massive amounts in artificial intelligence (AI), even though they have yet to show significant returns in the balance sheets.

Massive AI investment at leading firms

The common thread among the companies is the intention to allocate considerable resources to AI development, including chips, data centers, and technical teams. This race was sparked by OpenAI’s release of ChatGPT at the end of 2022, which led each giant to launch its own consumer-focused chatbot: Meta AI, Google’s Gemini, Amazon’s Rufus, and Apple’s new Siri version.

Financial results show negative cash flow

The reports indicate that Google (Alphabet) and Meta posted some of the lowest free cash flows in history. Alphabet’s free cash flow turned negative on revenue of $118 bn, while Meta recorded $784 million of free cash flow on $61 bn of revenue. In the first half, Meta’s Reality Labs – responsible for AI projects – lost almost $9 bn.

Market reaction to Meta and Apple disclosures

Meta’s shares fell to their second-lowest level in a year after CEO Mark Zuckerberg said the company is working on its own AI agent and plans to sell an AI tool to other firms, without giving a timeline for delivery. Apple, meanwhile, warned that sales of its flagship products could slow due to a shortage of microchips, though it highlighted enthusiasm for the Siri upgrade, which will be enhanced with Google’s Gemini technology. Tim Cook said the company is already considering charging users who heavily utilize the new Siri, stating: “We’re off-the-charts excited about Siri AI”.

Growth of chatbot users and revenue expectations

Google reported that 950 million people use Gemini at least once a month, three times the number a year ago. Despite this increase, chatbots still do not generate substantial revenues that would justify development costs.

AI spending outlook for the coming year

Meta raised the lower end of its AI budget, forecasting spending above $140 bn just this year. Microsoft aims to match the $190 bn investment made over the past 12 months with its annual spend, while Amazon plans to spend $220 bn on AI still in 2026. Microsoft’s shares rose to their highest level in six months, and Amazon’s hit a two-month high, boosted by performance in other businesses despite the negative cash flow.

With information from BBC News.