Big Tech Q1 Earnings Show AI Investment Surge

Major technology companies Alphabet, Meta Platforms, Amazon and Microsoft reported first-quarter earnings on Wednesday, revealing accelerated investments in artificial intelligence infrastructure amid questions about returns on those expenditures.

The four firms, the largest investors in AI data centers, disclosed results within minutes of one another after markets closed. They affirmed plans to spend hundreds of billions on AI this year, contributing to an industry buildout projected to cost trillions of dollars over time. Investors focused on whether the outlays are driving growth, particularly in cloud computing, a key indicator of AI demand.

Alphabet reported strong results from its Google Cloud unit, with revenue of $20 billion, surpassing analyst estimates of $18.4 billion. The division experienced accelerated growth fueled by demand for AI software and infrastructure, Google officials said. Backlog, representing contracted but unreported work, nearly doubled to more than $460 billion from the prior quarter. "Our AI models have great momentum," Alphabet CEO Sundar Pichai said on a call with analysts. "We are bringing helpful AI into the hands of billions of people every...