How Will AI Investment Affect Big Tech Profits? It May Be Hard to Find Out

The four big tech firms that reported earnings results in the past 10 days—Microsoft, Alphabet, Meta Platforms and Amazon—posted substantially richer operating profit margins than they have in several years. Investors shouldn’t get used to it.

That boost to profits, a result of layoffs and other cost-cutting measures last year, is helping fund a massive spending spree by each of the companies on the servers and data centers they  need for developing new artificial intelligence models and related products. But …

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