All articles tagged with #big tech
A new Embold Research poll, published by Heatmap Pro, finds 75% of Americans oppose building AI data centers in their area, with 61% strongly opposing, a dramatic shift from one year earlier when opposition was at 42%; the reversal spans Republicans, Democrats, and independents and across demographics, prompting observers to call it an unprecedented rapid change in public opinion on tech infrastructure.
Wall Street strategists say AI-driven cloud spending is beginning to pay off for the megacaps: Microsoft’s Azure revenue hit a record level with over $100 billion in annual cloud sales, Amazon’s AWS grew about 36.7% in the latest quarter, and Alphabet’s cloud business is expanding, with Meta also showing potential for increased compute usage. Although free cash flow is expected to stay negative for most hyperscalers in FY27, monetization is forecast to ramp faster than spending as cloud backlogs top about $2.3 trillion, with roughly $725–$760 billion in capex planned this year to fuel AIBuild-out.
BBC notes that tech chiefs like Zuckerberg, Andreessen, Altman, and Amodei have published long AI manifestos to cast AI as a historic opportunity, argue for job creation, and steer public debate and policy, even as layoffs and IMF warnings about job disruption complicate the optimistic narrative.
Claire Stapleton, a Google communications lead and organizer of the 2018 walkout, explains how Google moved from its founding motto toward a bloated, branding-focused culture, detailing management overreach, HR dynamics, and the personal cost of dissent in her memoir Don’t Be Evil.
DuckDuckGo responded to Meta’s AI-powered Meta Glasses by selling its own pair of “normal sunglasses” that do not record, transmit data, or contain cameras, marketing them as the world’s first true anti-surveillance sunglasses. The move comes amid backlash over Meta’s glasses, which have been linked to covert recordings and potential facial-recognition risks. DuckDuckGo’s tech-free shades, priced at $35, sold out within a week, highlighting a privacy-driven counterpoint to Big Tech’s surveillance gear.
Investors are rethinking tech stock valuations as the top market-cap names see a derating in multiples and software prices lose some premium while hyperscalers converge with hardware; with AI infrastructure spending remaining robust but debt-financed, higher yields and chip-market headwinds have cooled the AI rally and spurred a rotation into defensive stocks, signaling a normalization of tech valuations rather than clear bargains.
U.S. stocks rose with the Nasdaq leading gains as Big Tech rallied, lifting the Dow and S&P 500; oil prices fell after Trump called off a potential attack on Iran and signaled diplomacy to reopen the Strait of Hormuz. ISM manufacturing showed expansion, Palantir prepared for earnings, and Amazon crossed the $3 trillion market cap mark on strong AWS growth.
Goldman Sachs says the rally is broadening as Big Tech’s free cash flow comes under pressure from AI-related capex, fueling a rotation into a wider set of stocks and helping the equally weighted S&P outperform the cap-weighted index. With Meta and Alphabet guiding higher capex and a resilient economy boosting M&A, broad participation could persist even as cash flow remains subdued in tech.
U.S. stock futures rose Friday on optimism that Big Tech will sustain heavy AI investment, with Dow futures up about 0.6%, S&P 500 around 0.4% higher, and Nasdaq-100 leading gains after earnings. Amazon jumped on strong results and chip expansion, while Apple slipped on weaker Services/China revenue. The “Magnificent Seven” firms forecast roughly $720–$745 billion in AI-related capex in 2026, signaling continued AI investment despite higher rates. Energy names were in focus ahead of Exxon Mobil and Chevron reports as oil prices eased, with economic data like University of Michigan sentiment on tap later in the day.
U.S. stocks closed lower after the Fed left rates unchanged, with the Dow down about 1,153 points (2.19%), the S&P 500 -1.52%, and the Nasdaq -1.74% as investors weighed contrasting AI strategies: Microsoft jumped on strong enterprise demand and capex plans, while Meta Platforms fell after disappointing earnings. Treasury yields surged, with the 30-year above 5.2% for the first time since 2007, signaling a higher-for-longer rate environment ahead of key data (jobless claims, PCE inflation) and further earnings this week from Bristol-Myers Squibb, Amazon, Apple and Coinbase.
Investors are wary of Big Tech’s AI-driven capex as credit-default swaps for Oracle, Nvidia, Alphabet, Amazon, Meta, Broadcom and others hit fresh highs; Oracle’s five-year CDS is around 215 bps and Nvidia about 79 bps, with Meta’s Texas data-centre borrowing costs moving toward junk; Oracle was downgraded to BBB- by S&P amid questions about profitability, while OpenAI/Nvidia discussions for a 10GW Ohio data-centre project highlight the scale of planned spend. Analysts warn AI financing outpaces cash flow, making CDS hedges more common and signaling rising credit risk in the sector.
A journalist covers NYC's Summer of Ludd, a week-long, offline series of public events organized by neo-Luddites to critique AI and Big Tech. Through street marches, a public 'trial' of OpenAI's ChatGPT, and a manifesto urging participation without social media, the movement argues that public space and in-person connection can counter surveillance capitalism and the addictive pull of screens, blending protest with play and community.
Big Tech is increasingly using voluntary buyouts as a softer alternative to layoffs. Google has pressed for broader exit offers, while Microsoft rolled out a broad retirement program; experts say buyouts can preserve morale and give workers agency, but they’re less predictable and could still leave a company short if uptake is low or extend beyond those near retirement.
Executives from Alphabet, Tesla, IBM, AMD and Mastercard defend surging AI-related capex as the infrastructure for monetizing AI and boosting productivity, arguing returns will show up even as shares in big tech stumble. Alphabet's Q2 capex hit about $44.9 billion with 2027 guidance raised; Tesla plans roughly $25 billion in 2026; IBM cites AI infrastructure spending as a pathway to future value. The piece contends the AI spend is a long-run bet that should pay off within about 24 months as use cases monetize and scale, despite near-term market skepticism.
President Trump announced on Truth Social that the US will launch a new tariff probe into the European Union in retaliation for fines on U.S. tech firms, a move that could sharpen transatlantic tensions after Brussels fined Google €890 million and had previously penalised Apple, Meta and Amazon under digital-regulation rules.