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Big Tech earnings a test of the AI boom amid market turmoil

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Big Tech earnings a test of the AI boom amid market turmoil

Business News Tech AI Big Tech earnings a test of the AI boom amid market turmoil

Big Tech earnings a test of the AI boom amid market turmoil

Investors are pressing for evidence that the AI boom can deliver swift returns to justify its enormous price tag. Rising bond yields at AI cloud providers such as CoreWeave and record costs to insure Meta Platform's debt have amplified concerns about how the massive AI infrastructure buildout is being funded, particularly as higher US interest rates loom.

Wall Street expects Amazon, Microsoft and Alphabet to report on Wednesday faster growth in their cloud businesses, but a turbulent market selloff and concerns over rising costs of AI financing are tempering optimism. Investors are pressing for evidence that the AI boom can deliver swift returns to justify its enormous price tag. Rising bond yields at AI cloud providers such as CoreWeave and record costs to insure Meta Platform's debt have amplified concerns about how the massive AI infrastructure buildout is being funded, particularly as higher US interest rates loom. Market turmoil has rekindled warnings of an AI bubble from investors, including hedge fund Citadel 's founder Ken Griffin, and pushed companies to delay their IPOs. An expected Democratic sweep of the US midterm elections could spell more trouble for data centers that are already a target of protests over their impact on power grids, electricity bills and the environment.

Big Tech's results this week will be a litmus test for AI adoption and economic viability.


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