meta launches google while apple expands its platform

Key Takeaways

• Meta Platforms plans to nearly double its AI investment in 2026, with capital expenditures projected between $115 billion and $135 billion, up from $72 billion in 2025.
• Meta reported strong Q4 2025 revenue of $59.9 billion and full-year 2025 revenue of $201 billion, with net income increasing 9% in the final quarter.
• Alphabet's Gemini AI model secured a $1 billion annual deal with Apple for Siri, and its Q3 sales rose 16% to $102 billion.
• Amazon Web Services (AWS) signed a $38 billion deal with OpenAI for computing capacity, and Amazon is reportedly considering a $50 billion investment in OpenAI.
• Microsoft recorded $37.5 billion in capital expenditures in Q2, with two-thirds spent on GPUs and CPUs for AI, a 66% increase year-over-year.
• OpenAI's annualized revenue reached over $20 billion in 2025, but the company faces $1.4 trillion in spending commitments.
• AI security startup Outtake raised $40 million in Series B funding, with investors including Microsoft CEO Satya Nadella and customers like OpenAI.
• Avnet is increasing AI investments, reporting an 11.6% sales increase to $6.319 billion in its fiscal second quarter.
• Dow plans to cut 4,500 jobs as part of an AI overhaul, aiming to boost productivity through automation.
• The high demand for AI chips is contributing to a global chip shortage, with companies like Samsung preparing next-generation memory.

Meta Doubles AI Spending After Strong 2025 Profits

Meta Platforms reported strong financial results for 2025, with full-year revenue climbing 22% to US$201 billion and net income increasing 9% to US$22.8 billion in the final quarter. CEO Mark Zuckerberg plans to nearly double AI investment in 2026, expecting capital expenditure between US$115 billion and US$135 billion. This significant investment will fund data centers and equipment for advanced AI models. Meta's advertising revenue, which reached US$58.1 billion in the quarter, continues to support this growth. The company also noted a 30% increase in engineer output due to AI-powered development tools.

Meta Revenue Beats Forecasts Funds Huge AI Push

Meta announced strong fourth-quarter 2025 sales of $59.9 billion, surpassing analyst expectations. The company also projected first-quarter 2026 sales to be between $53.5 billion and $56.5 billion, beating estimates. CEO Mark Zuckerberg plans record capital expenditures of $115 billion to $135 billion in 2026 to build AI infrastructure and achieve superintelligence. This spending is a significant increase from $72 billion in 2025. Chief Financial Officer Susan Li stated that AI investments are already improving ad targeting and content recommendations, helping to fund these ambitious projects.

Meta Reports Record Profits Funds Huge AI Plans

Meta reported record revenue of $59.89 billion and net income of $22.77 billion for the fourth quarter of 2025, both exceeding Wall Street expectations. The company plans massive AI investments for 2026, with capital spending projected to be $115 billion to $135 billion, up from $72.2 billion in 2025. This investment will support Meta Superintelligence Labs efforts and core business. Meta also announced a multiyear deal of up to $6 billion with Corning for fiber-optic cables. Daily active users across Meta's apps reached 3.58 billion in December 2025.

Meta Profits Soar Amid Massive AI Investment

Meta reported strong financial results for the fourth quarter of 2025, with $59.89 billion in revenue and $8.88 earnings per share, surpassing Wall Street expectations. CEO Mark Zuckerberg announced a major AI acceleration, with plans to invest $100 billion in AI infrastructure over the next decade. The company's total spending for 2026 is estimated between $162 billion and $169 billion, mainly for infrastructure and AI talent. Meta is shifting its focus from the metaverse to building "personal superintelligence" and faces a social media addiction trial.

Wall Street Backs Zuckerberg's Big AI Spending

Wall Street has given Meta CEO Mark Zuckerberg the green light to continue heavy investments in AI, despite past concerns. Zuckerberg plans to significantly invest in infrastructure to train leading models and deliver "personal superintelligence." Meta's CFO Susan Li noted the company is "capacity constrained" and needs more computing power for its core ad business and advanced AI models. While new AI products will roll out throughout 2026, online advertising remains Meta's primary revenue driver, supporting these ambitious AI goals. Zuckerberg also mentioned testing a new AI model code-named Avocado.

Meta Doubles AI Spending for Personal Superintelligence

Meta announced plans to nearly double its AI investment in 2026, with capital expenditure expected to be between $115 billion and $135 billion. CEO Mark Zuckerberg aims to build "personal superintelligence" by investing heavily in data centers and infrastructure. While no new products were named, Meta's TBD AI unit, led by Alexandr Wang, is testing a new AI model code-named Avocado, intended to succeed the Llama family. Zuckerberg believes developing its own AI models is crucial for Meta to "shape the future" of these products and empower individuals.

Invest in Micron and Alphabet Not BigBear.ai

Investors should consider Micron Technology and Alphabet instead of BigBear.ai for AI investments. BigBear.ai's stock rose 152% in three years, but its sales dropped 20% in the third quarter, and it is not profitable. Micron Technology, a memory chip maker, sees huge demand for its products due to AI, with sales up 57% to $13.6 billion in its first fiscal quarter of 2026, and it is profitable. Alphabet's Gemini AI model is gaining wide use, including a deal with Apple for Siri, which will bring $1 billion annually. Alphabet's third-quarter sales increased 16% to $102 billion, showing strong growth.

Amazon and Alphabet Thrive with AI Growth

Amazon and Alphabet are both successfully using artificial intelligence to boost their businesses. Amazon Web Services AWS, the world's largest cloud provider, signed a $38 billion deal with OpenAI for computing capacity. Amazon also uses AI to improve product recommendations, leading to a 13% increase in Q3 net sales to $180.2 billion. Alphabet's Google Search remains strong, with AI driving increased usage and a 16% rise in Q3 sales to $102.3 billion. Google Cloud, the third largest cloud provider, also saw sales grow 34% to $15.2 billion, benefiting from the expanding AI infrastructure market.

Alphabet Is a Top AI Stock to Buy

Alphabet, a $4.1 trillion tech giant, stands out as a top AI stock due to its broad involvement in artificial intelligence. The company participates in AI research, chip development, and cloud computing through its Google Cloud Platform. Alphabet's Gemini model supports an app with 650 million monthly active users, and AI tools enhance platforms like Search, YouTube, and Gmail. AI also helps improve advertising results for customers. With a reasonable P/E ratio of 29.3 and consistent double-digit earnings growth, Alphabet offers a strong investment opportunity in the AI sector.

Outtake Raises $40 Million for AI Security Tools

Outtake, a cybersecurity startup founded in 2023 by Alex Dhillon, secured $40 million in Series B funding. The company develops an AI-based system that uses software agents to detect and remove various online threats. Iconiq's Murali Joshi led the funding round and will join Outtake's board. Notable investors include Microsoft CEO Satya Nadella and Pershing Square CEO Bill Ackman. Outtake's customers include OpenAI, AppLovin, and several US federal agencies. The company plans to use the funds to expand its engineering and product teams and invest in infrastructure to meet increasing demand for its automated threat detection tools.

Outtake Secures $40 Million for AI Security

AI security startup Outtake raised $40 million in a funding round led by Iconiq Growth. The company's platform uses artificial intelligence to help businesses fight identity fraud. High-profile investors like Microsoft chairman Satya Nadella and Pershing Square founder Bill Ackman also participated. This significant investment shows the growing importance of AI in cybersecurity. Outtake plans to use the funds to further develop its platform, expand its reach, and scale operations to meet increasing demand.

Avnet Boosts AI and Digital Amid Sales Growth

Avnet is increasing its investments in digital commerce tools and artificial intelligence as the global electronics market recovers. For its fiscal second quarter ending December 27, Avnet reported sales of $6.319 billion, an 11.6% increase from the previous year. CEO Phil Gallagher stated that digital capabilities help Avnet stand out by offering faster service and technical support. The company uses AI to understand customer behavior, predict demand, and suggest alternative parts when supplies are low. Avnet also uses AI internally to manage inventory more efficiently across its global network.

Tech Giants Spend Billions in AI Race

Meta CEO Mark Zuckerberg announced a "major AI acceleration" and plans to release new models and products, causing Meta's stock to rise 11%. This reflects a massive spending spree in Silicon Valley, with hardware providers like Samsung and SK Hynix benefiting from increased demand for chips. However, this demand is worsening a global chip shortage. Elon Musk is even considering building his own factory for logic and memory chips to avoid a "chip wall." Samsung plans to ship its next-generation HBM4 memory in February, which will integrate with Nvidia's upcoming Rubin processors.

AI Analyst Picks Top 3 Stocks to Buy

TipRanks' AI Analyst, Spark, has identified three top stocks expected to outperform the market. Nextpower, a solar technology provider, received a perfect 10/10 Smart Score after beating earnings, boasting no debt and significant cash. Dycom Industries, an infrastructure contracting service, is crucial for building the physical wires and data centers needed for AI. Ryanair Holdings, a low-cost budget airline, stands out as Europe's most efficient airline, generating high profits. These companies were chosen for their strong financial health, cash flow, and profit margins, indicating long-term stability and growth potential.

Microsoft Spends Record on AI Hardware

Microsoft reported strong earnings but also a record amount of spending on AI hardware. Bloomberg's Anarug Rana noted that investors have high expectations for Microsoft's AI investments. While there are risks in the competitive tech space, the company's significant spending on AI hardware is expected to pay off in the long run.

Microsoft AI Spending Worries Investors

Microsoft reported record capital expenditures of $37.5 billion in its second-quarter earnings, with two-thirds spent on GPUs and CPUs for AI. This spending, up 66% from last year, has started to worry investors, especially with slowing cloud growth at 39%, down from 40%. CFO Amy Hood explained that some cloud capacity is used internally, and customer demand still exceeds supply. However, investors are also concerned about Microsoft's heavy reliance on OpenAI, as 45% of its cloud commitments are from the AI giant, whose path to profitability remains uncertain.

Amazon May Invest $50 Billion in OpenAI

Amazon.com is reportedly in talks to invest up to $50 billion in OpenAI, signaling continued high interest in AI funding. This potential deal comes as Wall Street shows caution towards companies already partnered with OpenAI, like Microsoft, due to concerns about OpenAI's ability to meet its vast spending commitments. OpenAI's annualized revenue reached over $20 billion in 2025, but it has $1.4 trillion in spending commitments. Despite investor worries, OpenAI is still seen as a leader in the AI race, with a new funding round potentially valuing it over $750 billion. Meanwhile, Amazon is also undergoing internal changes, including laying off 30,000 people.

Dow Cuts 4,500 Jobs in AI Overhaul

Chemicals giant Dow announced plans to cut 4,500 employees as part of an AI overhaul. The company aims to use automation and artificial intelligence to boost its growth and productivity. These job cuts will result in one-time charges of $1.1 billion to $1.5 billion. Dow also reported a wider quarterly loss due to lower revenue and higher costs.

Sources

• Why Meta Plans to Double AI Investment as Profits Surge
• Meta Says Revenue to Beat Estimates, Supporting AI Spending
• Meta Rakes in Record Revenue and Profits for Q4, Details Massive AI Investments for 2026
• Meta wows Wall Street despite spending billions on AI and facing social media addiction trial
• Meta's Mark Zuckerberg gets green light from Wall Street to keep pouring money into AI
• Meta to nearly double its investment in AI in 2026 as Mark Zuckerberg looks to build a 'personal superintelligence'
• Should You Forget BigBear.ai and Buy These 2 Artificial Intelligence (AI) Stocks Instead?
• Best Stock to Buy Right Now: Amazon vs. Alphabet
• 1 Reason This $4 Trillion Tech Giant Is the Ultimate AI Stock to Buy With $1,000
• Outtake Attracts Notable Funders to Expand AI-Based Enterprise Security Tools - The National CIO Review
• AI security startup Outtake raises $40M from Iconiq, Satya Nadella, Bill Ackman and other big names
• Avnet deepens digital and AI investment as electronics demand rebounds
• Zuckerberg, Musk vie for AI primacy with $155 billion spree
• These 3 Stocks Are Expected to Outperform the Market, Says TipRanks’ AI Analyst
• Microsoft Reports Record Spend on AI Hardware, as Earnings Beat Estimates
• Microsoft's AI Spend Is Starting To Spook Investors
• Amazon bets on OpenAI even as Wall Street cools to the ChatGPT maker
• Dow to Cut 4,500 Employees in AI Overhaul