AI may be making big tech companies weaker, WSJ reports

With the belief AI is going to transform the tech industry and global economy, Microsoft (MSFT), Google (GOOGL), and Amazon (AMZN) have collectively spent over $600B between 2023 and this year on AI, Asa Fitch of The Wall Street Journal reports. The three companies entered the AI boom with strong balance sheets, low debt, and growing revenue, so the investments have not yet presented many problems. The cash drain, however, is beginning to make a dent in their balance sheets, indicating the businesses may need to be reshaped if its AI expenditures continue to grow.