The tech titans are all in on artificial intelligence (AI), with Microsoft, Meta, Google, Apple and Amazon each pledging hefty investments. Yet, despite the exorbitant spending, their latest earnings results reveal that these AI tools and chatbots remain costly propositions with little to show for it in terms of revenue.

Google's parent company, Alphabet, reported its first negative free cash flow as a public company, while Meta lost nearly $9bn in its Reality Labs division. These figures underscore the risks investors are taking on this nascent technology.

However, there’s still demand for new tech, with Google reporting 950 million monthly users of its Gemini chatbot and even Apple seeing better-than-expected sales of Macs, iPhones and iPads. The firm is already planning to introduce paid tiers for its AI voice assistant, Siri, reflecting the growing importance of these tools.

While Wall Street is increasingly demanding tangible returns from this massive investment, tech firms are forging ahead. Microsoft’s stock soared despite another hefty AI budget, highlighting that not all investors share the same concerns. Amazon, meanwhile, saw positive stock performance due to strong sales in other areas, with plans to spend $220bn on AI.