Artificial intelligence projects catapulted overall spending to US$14 billion for Microsoft and US$12 billion for Alphabet in the first three months of 2024, but strong revenues at both firms—as well as a US$70-billion share buyback and first-ever dividend for Alphabet—helped boost their stock prices in after-hours trading Thursday. (The Logic)

Talking point: Microsoft has been integrating AI into its product line through its partnership with OpenAI, helping increase customer demand and revenue. Alphabet, meanwhile, logged 28 per cent year-over-year growth in Google Cloud, which houses much of the firm’s AI technology, with revenues of US$9.6 billion for the quarter. The positive reaction came in contrast to how markets reacted to Meta’s more aspirational plans announced a day earlier. While the Facebook and Instagram parent reported strong revenues for the quarter, it expects its spending to accelerate and its growth to slow as it tries to make up ground in the AI race. “Once our new AI services reach scale, we have a strong track record of monetizing them effectively,” CEO Mark Zuckerberg told investors this week.