Big Tech Earnings Put AI Capital Spending and OpenAI Revenue in Focus

Microsoft, Alphabet’s Google, Meta and Amazon are among the biggest investors in computing capacity for generative AI, and their data-center purchases directly affect suppliers including Nvidia and TSMC. Their earnings test not only whether Azure, Google Cloud and AWS can monetize AI, but also whether markets will continue to tolerate heavy capital spending. Weaker-than-expected demand from OpenAI would undermine the case for expanding capacity.

The four companies reported first-quarter earnings between April 24 and May 1, 2025. Alphabet shares rose about 6% at one point in after-hours trading, while Meta fell about 7%. Alphabet projected full-year capital spending of $75 billion, Meta forecast $64 billion–$72 billion and Amazon estimated about $100 billion. The Wall Street Journal separately reported that OpenAI’s revenue and user numbers were below internal targets, weighing on AI-related stocks.