{
  "id": 17165073,
  "title": "Big Tech’s US$750 billion AI bet collides with slowing growth in core businesses",
  "url": "https://urgent.news/2026/10/30/big-techs-us-750-billion-ai-bet-collides-with-slowing-growth-in-core",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-30T03:04:56.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/startups-tech/technology/big-techs-us750-billion-ai-bet-collides-slowing-growth-core-businesses"
  },
  "original_language": "en",
  "account": "The core businesses of major U.S. tech companies, which account for a collectively estimated $750 billion in artificial intelligence spending by 2026, are experiencing signs of slowdown. Google's parent company, Alphabet, reported that ad sales from search and other channels, a key revenue driver, grew at the slowest pace in five quarters. Similarly, Amazon and Microsoft announced slowed growth in both their e-commerce and advertising businesses, with Amazon's capital spending outlook for 2026 remaining at around $220 billion.\n\nDespite the cautious financial outlook, these tech giants have remained committed to investing heavily in AI technologies. Amazon, Google, and Meta Platforms have all reiterated their plans for approximately $750 billion in capital expenditures in 2026. To stay competitive, these companies are pushing the boundaries of AI development, integrating AI features into their products and services, and developing new AI-powered applications.\n\nHowever, this AI-driven transition is proving challenging for some of these tech behemoths. Google's search engine, which is the backbone of the company, has seen a decline in profitability due to the growing popularity of AI features like the dedicated AI Mode. Meta's new agentic AI app, Muse, has also proven to be computationally intensive, leading to a significant drop in its stock price. Similarly, Amazon's advertising services unit saw the slowest growth since it was first reported separately in 2022, leaving investors questioning the company's aggressive AI investments.\n\nThe tech sector's transition to AI-powered products has been met with skepticism, as investors grapple with the trade-off between growth in new AI-driven businesses and the profitability of legacy offerings. While the cloud computing segment has shown promise, with Google's cloud division reporting a more than doubling of sales and a tripling of operating income, the overall effects of these AI investments remain uncertain.",
  "summary": "These firms are getting cannibalised by the very technology they are betting on",
  "key_points": [
    "Core businesses of major U.S. tech companies experiencing slowdown in growth.",
    "Alphabet, Amazon, and Microsoft commit $750 billion to AI investments by 2026.",
    "AI-driven transition challenges profitability of legacy offerings for tech giants."
  ],
  "editors_take": "Massive capital expenditures on artificial intelligence create a precarious tension between future technological dominance and the declining profitability of the legacy advertising and e-commerce engines that currently fund them.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}