Alphabet and Microsoft Report Strong AI-Driven Growth as Spending Climbs

Alphabet and Microsoft reported quarterly earnings Wednesday showing strong demand for artificial intelligence while continuing to pour billions into the infrastructure behind it. Alphabet reported third-quarter revenue of $127.6 billion, up 25%, and Google Cloud revenue more than doubled to $30.7 billion. Microsoft posted fiscal first-quarter revenue of $92.3 billion, up 19%, with its Azure cloud business growing 48%. Alphabet projects capital expenditures of $195 billion to $205 billion this year and expects them to rise significantly in 2027. Microsoft shares rose nearly 3% after hours, putting the stock in record-high territory.

Fox Business, the right-leaning outlet, leads with surging AI demand and soaring spending, opens with reports that OpenAI's annualized revenue fell short of expectations, quotes Alphabet CEO Sundar Pichai on demand, and features David Bahnsen's warning of systemic risks from massive capital commitments and negative free cash flow. The New York Times, the left-leaning source, frames the story around investors bracing for big tech's AI spending before the reports, after tech stocks had rebounded; only its excerpt was available. The alternative outlets focus on Microsoft: CNBC leads with the stock's rebound, record-high territory and a new price target, while MarketWatch credits rapid growth with spending kept in check. All cover the strong AI demand and rising spending, but Fox stresses cost and risk, the NYT stresses investor anticipation, and the alternative outlets stress Microsoft's stock gains.