Tech Earnings: AI Investments and Market Shifts

Meta, Tesla, and Microsoft reported their quarterly earnings with mixed outcomes. Meta exceeded expectations with a significant rise in profit and revenue driven by increased ad revenue, while predicting a rise in expenses due to AI investments. Microsoft reported a 12% increase in revenue but experienced a 5% drop in after-hours trading due to concerns over competition from Chinese AI startup DeepSeek. Tesla's earnings fell short of expectations with an 8% decline in revenue, partially attributed to the impact of DeepSeek's emergence on market sentiment. The focus remains on AI investments, as Meta plans to increase capital expenditure significantly, reflecting optimism about future growth opportunities. Meanwhile, SoftBank is reported to be in discussions to invest $25 billion in OpenAI, indicating ongoing interest in AI development.