News reporting focused on AI and machine learning, covering the companies behind these technologies, their real-world applications, and the ethical concerns they raise. This includes areas like generative AI (large language models, text-to-image and video), speech tech, and predictive analytics.
Microsoft reported Q4 fiscal 2026 earnings that exceeded expectations, with revenue reaching $90 billion, up 18% year over year. Cloud revenue surged 27% to $59.3 billion, while Azure surpassed $100 billion in annual revenue for the first time. The results eased investor concerns about massive AI infrastructure spending, sending shares up over 7% in after-hours trading.
Alphabet reported Q2 revenue of $119.8 billion, up 24% year-over-year, beating analyst estimates. The company raised its capital expenditure guidance to at least $180 billion, signaling accelerating AI spending. Google Cloud revenue surged 82% to $24.8 billion, driven by enterprise AI solutions. The Gemini app now has 950 million monthly active users and processes 22 billion API tokens per minute.
High-bandwidth memory (HBM) has grown from 52% to 63% of AI chip component spending between Q1 2024 and Q4 2025, according to analysis from Epoch AI. The increase reflects rising memory prices and tight supply, driving up total component costs from $22 billion to $52 billion over the period. Hyperscalers like Microsoft and Meta have adjusted their capex guidance to account for higher component prices.
Tesla announced plans to spend $25 billion on capital expenditures in 2026, a sharp rise from prior years, to fund its move into AI and robotics. The company detailed investments in compute infrastructure, manufacturing expansion, Optimus robots, and robotaxi operations during its first-quarter earnings call. CEO Elon Musk called the increase justified for future revenue growth, while CFO Vaibhav Taneja noted upcoming negative free cash flow despite strong cash reserves.
Tesla plans to spend $25 billion on capital expenditures in 2026, up from earlier estimates and past years like $8.5 billion in 2025. The funds target AI infrastructure, robotics production including Optimus, and manufacturing expansions. CEO Elon Musk calls the increase essential for future revenue, amid similar big spends by Amazon and Google.