Tech Giants Struggle to Prove AI Investments Will Pay Off, Disappointing Wall Street

Despite heavy investments in artificial intelligence infrastructure, Amazon, Microsoft, and Google failed to meet Wall Street’s expectations for translating AI spending into significant sales growth. Bloomberg reports that the second quarter earnings season was a crucial test for tech giants Amazon, Microsoft , and Google parent company Alphabet as they aimed to demonstrate the profitability of their substantial investments in artificial intelligence infrastructure. However, their results fell short of Wall Street’s expectations, leading to declines in their stock prices. Generative AI, the technology capable of creating text, images, and videos...