Microsoft, Meta, Amazon and Alphabet have posted positive report cards for the quarter past with AI infrastruture needs driving up revenue.

A key question among investors and analysts is whether that massive spending is providing tangible results Read more at The Business Times.

Alphabet rose roughly 7 percent after hours while Microsoft, Meta and Amazon all sold off, despite earnings beats from each of the mega-caps. The rally promoted Google from a participant in the AI arms race to a pace setter.

Artificial intelligence is no longer a speculative bet for Big Tech it is already driving growth across cloud, advertising and enterprise software. But the very scale of investment required to sustain that momentum is still emerging as the industry’s biggest fault line.

Futures rose with Google, Amazon and Caterpillar big earnings winners, though Meta tumbled. Oil prices reversed lower from overnight gains.

Alphabet delivered the strongest results of the four, posting Q1 2026 revenue of $109.9 billion, up 22% from $90.2 billion a year earlier.

Facebook parent Meta signed a deal to deploy tens of millions of Amazon's Graviton5 processor cores for agentic AI workloads, the latest major customer win for Amazon's growing custom silicon business.

Alphabet, Amazon, Meta and Microsoft —are set to report their latest quarterly results after Wednesday's closing bell.

In the latest big AI deal, Meta has inked a multibillion-dollar deal to use Amazon's new AWS Graviton chips, which are CPUs, not GPUs.

Meta has commandeered a big chunk of Amazon's homegrown CPUs (not GPUs) for AI agentic workloads, signaling that a new kind of chip race has begun.

Big Tech earnings are set to test whether massive AI-driven investments are translating into real growth, with analysts focusing on revenue signals, spending discipline, and long-term monetization. Brad Erickson (RBC Capital Markets Analyst): Growth Strong,