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The Neuron ● Covered by 3 sources
Meta and Microsoft just posted huge AI-fueled sales alongside shrinking profits. Wall Street shrugged and demanded they spend even more.
Based on reporting by The Neuron — read the original for the full story.
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Meta pulled in $60.8 billion last quarter, up 28 percent year over year. Its operating income fell 8 percent. Net income dropped 14 percent. That's not a typo — that's the current shape of the AI business at scale, where growth and profitability have started pointing in opposite directions and nobody seems bothered.
Microsoft's numbers tell the same story from a different angle. Azure grew 43 percent, the cloud backlog hit $678 billion, and annual capital spending landed at $115.9 billion. Satya Nadella then told investors to expect 45 percent currency-adjusted Azure growth next year, plus still more spending on top of that. Shares went up anyway. A few years ago, a company burning cash at this rate while promising even bigger burns ahead would have spooked investors. Now it's Tuesday.
And the appetite for physical infrastructure keeps outpacing the appetite for restraint. Brookfield and NextEra want to build a $100 billion-plus AI campus on a former uranium-enrichment site in Paducah, Kentucky — 2 gigawatts of new gas generation, up to 2.6 gigawatts of battery storage, and a promised 8,000 construction jobs. This is what
My take — AI-written commentary, not fact-checked reporting
I'll say the unpopular thing: the market cheering weaker free cash flow because the growth numbers are bigger is not bullish, it's a tell that everyone's betting on the same story ending well. Meanwhile Google quietly dismantled its Nobel-winning AlphaFold team to chase generalist Gemini agents, and that's the actual scandal buried under all this capex noise — we're trading proven scientific wins for another shot at a chatbot that impresses shareholders.
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