Big Tech’s latest earnings reports showed that Microsoft, Meta, Google, Apple and Amazon remain committed to vast artificial-intelligence investment, despite growing investor concern about returns. The results matter because shareholders are increasingly demanding evidence that spending on chips, data centres and staff will produce reliable revenue, rather than accepting long-term promises.

Consumer AI chatbots such as Meta AI, Gemini, Rufus and Siri are not yet generating significant direct income, while related costs have reduced free cash flow. Alphabet reported negative free cash flow despite $118bn in revenue, Meta had $784m in free cash flow on $61bn in revenue and Reality Labs lost nearly $9bn in the first half; Meta expects to spend more than $140bn on AI this year. By contrast, Microsoft’s stronger AI adoption and wider revenue growth helped lift its shares, while Amazon’s other businesses supported its valuation despite planned AI spending of $220bn.