Sky Newsยท2025-10-30 01:38Core Insights - Major tech companies reported mixed quarterly earnings, raising concerns about a potential bubble in artificial intelligence investments [1] Microsoft - Microsoft spent nearly $35 billion on AI infrastructure in the last quarter, a significant increase from the previous year [1] - Despite an 18% revenue increase and a 12% rise in net income, Microsoft shares fell nearly 4% in after-hours trading due to concerns over rising costs [2] - The company holds a 27% stake in OpenAI, contributing to its market capitalization exceeding $4 trillion, although this level is now uncertain due to recent selloffs [4][5] Alphabet (Google) - Alphabet's shares rose by 6% in after-hours trading following impressive quarterly results, with total revenue reaching $102.35 billion [6] - The company remains strong in its advertising unit despite competition from AI startups, and analysts believe it is well-positioned for long-term AI leadership [7] - Alphabet's AI features are resonating with users, alleviating fears about its core search business being threatened by generative AI [8] Meta (Facebook) - Meta's shares dropped by as much as 10% in after-hours trading, with expectations of significantly higher capital expenses next year due to increased AI investments [12] - The company reported a net income of $2.7 billion but faced a $16 billion loss attributed to external factors [13] - Meta aims to achieve superintelligence in AI, reflecting its commitment to catching up in the AI space while still benefiting from its large user base [13]