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Microsoft, Meta, Amazon and Google Face This Growing Risk Around AI
If AI revenue doesn't come about as quickly as expected, large tech companies could see margin pressure and have to wait longer for returns on their massive investments. Large technology companies are pouring money into artificial-intelligence hardware purchases - and those moves are "not without risk," according to Moody's analysts.Alphabet Inc. , Amazon.com Inc. , Meta Platforms Inc. and Microsoft Corp. are among those with swelling capital-expense budgets that the team at Moody's said will support data-center capacity in the years to come."Some of their centers cover more than 500,000 square feet - about the size of six soccer pitches - and cost upwards of $1 billion to construct," the analysts, led by Rai Joshi, wrote in a Wednesday report. The goal is to bring about new AI functions for consumers and businesses."If demand for AI applications by enterprises turns out lower than expected, for example, they may have to wait longer than anticipated to realize returns on their inves
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