Big Tech's $600 billion spending plans exacerbate investors' AI headache


FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK/LONDON, ‌Feb 6 (Reuters) - A planned $600 billion artificial intelligence spending splurge by big tech firms in 2026 is adding to investor unease as they ‌assess the implications for profitability as well as a potential existential threat to software firms.

Shares of Amazon, which had announced ‌a $200 billion capital expenditure outlay, slid 7% on Friday, while Alphabet lost 3% after the company said on Wednesday that capital spending could double this year. Meta Platforms was down 1.3%.

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