{"id":105231,"date":"2025-10-30T02:30:09","date_gmt":"2025-10-30T02:30:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/105231\/"},"modified":"2025-10-30T02:30:09","modified_gmt":"2025-10-30T02:30:09","slug":"microsoft-alphabet-and-meta-results-overshadowed-by-growing-fears-of-ai-bubble-science-climate-tech-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/105231\/","title":{"rendered":"Microsoft, Alphabet and Meta results overshadowed by growing fears of AI bubble | Science, Climate & Tech News"},"content":{"rendered":"

Some of the world’s biggest tech giants reported quarterly earnings on Wednesday – with a mixed bag of results as fears grow that a bubble is forming in artificial intelligence.<\/p>\n

Microsoft<\/a> revealed that its spending on AI infrastructure hit almost $35bn (\u00a326.5bn) in the three months to the end of September, a sharp rise compared with the year before.<\/p>\n

Despite revenue jumping 18% and net income rising 12%, shares plunged by close to 4% in after-hours trading, with investors concerned about the mounting costs of sustaining the boom.<\/p>\n

\"Microsoft<\/p>\n

Image:
\n Microsoft is now a $4trn company thanks to its stake in ChatGPT maker OpenAI. AP file pic <\/p>\n

Microsoft’s vice president of investor relations Jonathan Neilson said: “We continue to see demand which exceeds the capacity we have available.<\/p>\n

“Our capital expenditure strategy remains unchanged in that we build against the demand signal we’re seeing.”<\/p>\n

Big Tech is facing increasing pressure to show returns on the massive AI<\/a> investments they’re making, against a backdrop of soaring valuations and limited evidence of productivity gains.<\/p>\n

Microsoft became the world’s second most valuable company this week thanks to its 27% stake in OpenAI<\/a>, the creator of ChatGPT<\/a>.<\/p>\n

Its market capitalisation surged beyond $4trn (\u00a33trn) at one point, but that psychologically significant threshold is now in doubt because of recent selloffs.<\/p>\n

\"iStock<\/p>\n

Image:
\n iStock file pic <\/p>\n

Alphabet makes history<\/p>\n

Last night’s results weren’t all doom and gloom – with shares in Google’s<\/a> parent company surging by 6% in after-hours trading.<\/p>\n

Alphabet<\/a> has also set out aggressive spending ambitions, but placated investors thanks to an impressive set of results that surpassed analysts’ expectations.<\/p>\n

Total revenue for the quarter stood at a staggering $102.35bn (\u00a377bn), with the search giant’s advertising unit remaining robust despite growing competition.<\/p>\n

But concerns linger that Alphabet’s dominance in search could be undermined by AI startups, with OpenAI recently unveiling a browser designed to rival Google Chrome.<\/p>\n

Hargreaves Lansdown’s senior equity analyst Matt Britzman shrugged off this threat – and believes the company is “gearing up for long-term AI leadership”.<\/p>\n

He said: “Alphabet just delivered its first-ever $100bn quarter, silencing the doubters with standout performances in both Search and Cloud.<\/p>\n

“AI Overviews and AI Mode are clearly resonating with users, helping to ease fears that Google’s core search business is under threat from generative AI.<\/p>\n

“With ChatGPT’s recent browser demo falling short of a game-changer,<\/a> Google looks well-placed to put up a strong defence as gatekeeper to the internet.”<\/p>\n

Read more from Sky News:
Federal Reserve cuts interest rates<\/a>
Microsoft Azure outage hits thousands<\/a><\/p>\n

Please use Chrome browser for a more accessible video player<\/p>\n

\"\"<\/p>\n

1:16<\/p>\n

Browser could ‘change the way we use the internet’<\/p>\n

Meta faces a mauling<\/p>\n

Meta<\/a> – the parent company of Facebook, Instagram, and WhatsApp – saw its shares tumble by as much as 10% in after-hours trading.<\/p>\n

Mark Zuckerberg’s tech empire anticipates “notably larger” capital expenses next year as it ramps up investments in AI and goes on a hiring spree for top talent.<\/p>\n

Net income in the third quarter stood at $2.7bn (\u00a32bn) and suffered an eye-watering $16bn (\u00a312bn) hit because of Donald Trump’s “Big Beautiful Bill”.<\/p>\n

Meta was late to the party on AI but has now doubled down on this still-nascent technology – setting an ambition to achieve superintelligence, a milestone where machines could theoretically outthink humans.<\/p>\n

The social networking giant continues to benefit from its massive user base, and expects fourth-quarter revenues of up to $59bn (\u00a344bn).<\/p>\n","protected":false},"excerpt":{"rendered":"Some of the world’s biggest tech giants reported quarterly earnings on Wednesday – with a mixed bag of…\n","protected":false},"author":2,"featured_media":105232,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-105231","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/105231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=105231"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/105231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/105232"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=105231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=105231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=105231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}