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    Amazon burns cash, Intel flags weak PC demand as AI boom's costs ripple across markets

    As Wall Street grows increasingly anxious about AI-related expenditures, major tech giants like Amazon and Intel display alarming financial outcomes. With soaring operational costs and waning consumer interest, both companies face challenging cash flow situations, resulting in borrowing to cover rising expenses. This situation has led to declines in semiconductor and AI cloud shares as investors question future profitability, sparking fears about the tech sector's growth sustainability.

    US stocks: AI shares tumble up to 16%, erasing $80 billion as hot US inflation fuels rate fears

    Amid rising inflation, major AI firms like CoreWeave and Dell Technologies experienced significant stock price drops, losing around $80 billion in market value. Increased US interest rates have investors worried about the borrowing hurdles faced by less profitable firms within the sector. Even with the strong performance of giants like Nvidia and Microsoft, skepticism remains high, reminiscent of the dot-com era's cautionary tales.

    Big AI reset ahead? Chris Wood doubts hyperscalers’ $990 bn capex estimates, highlights India’s reverse AI trade advantage

    Jefferies’ Chris Wood expects the AI investment narrative to face a major reset, questioning whether Meta, Alphabet, Amazon and Microsoft can sustain $990 billion in projected 2027 capex. He also sees Indian IT services as a potential reverse AI trade, with valuations falling even as employment remains resilient.

    Seattle Times, Newsday sue OpenAI, Microsoft, alleging copyright infringement

    The suit in the US District Court for the Southern District of New York alleges that OpenAI and Microsoft scraped the newspapers' websites, including ⁠content ⁠behind paywalls, and incorporated articles into datasets used to train and operate products including ChatGPT, Microsoft Copilot and Bing's AI features.

    Microsoft shares rise after Azure sales disclosure; AI cloud growth in focus

    Microsoft has disclosed Azure’s quarterly and annual revenue for the first time, giving investors a clearer view of its position against Amazon Web Services and Google Cloud amid rising AI infrastructure demand. Azure reported $29.4 billion in quarterly sales and $101.9 billion for fiscal 2026, while Microsoft also unveiled a new two-segment reporting structure.

    Microsoft reveals Azure cloud sales in financial reporting shift

    Microsoft said that Azure had $29.4 billion in sales in its most recently ended quarter and $101.9 billion in sales in its most ⁠recent ⁠fiscal year ended June 30. The figures place Microsoft behind Amazon, whose cloud sales were $42.2 billion in its most recent quarter, but ahead of Google, which reported $24.8 billion in cloud sales in its most recent quarter.

    The Economic Times
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