Microsoft has “tapped on the brakes” of its spending on artificial intelligence, reducing capital expenses by more than $1 billion in the first three months of 2025. But after 10 straight quarters of increased AI outlay, momentum continues to propel the sector forward with new data center commitments in 16 countries and the expansion of the Phi small language family with the debut of Phi-4 (that supports text, visual and voice inputs). The moves come on the heels of $70 billion in sales for the first three months of 2025, when profits were up 18 percent to $25.8 billion. Continue reading Microsoft Reduces Spending on AI but Momentum Continues

YouTube is testing a new AI Overviews feature for search and discovery powered by Gemini. A “small number” of YouTube Premium subscribers in the U.S. will notice a video results carousel popping up for some English-language search queries. The feature taps AI to highlight clips from videos deemed most helpful for a particular search. Initially, the feature will appear in response to practical inquiries, aiming for a more helpful response to things like product inquiries and requests for information about a place or activity. The idea is to provide quick highlights from several videos. Continue reading YouTube Testing Gemini-Powered AI Overviews for Searches

Alphabet revenue was $90.2 billion in Q1, a 12 percent increase year-over-year that reflects “robust momentum” across Google Search and YouTube ads and Google Cloud, each delivering double-digit growth rates. Google Cloud was up 28 percent to $12.3 billion in divisions including AI infrastructure and generative AI solutions. Net profit surged 46 percent to $34.5 billion while operating income grew 20 percent to $30.6 billion. Google and Alphabet CEO Sundar Pichai said the quarter was “super exciting” due to breakthroughs in performance by Gemini 2.5, calling it “our most intelligent AI” and a strong foundation “for future innovation.” Continue reading Alphabet Profit Is Up 46 Percent, Driven by AI and Advertising

Warner Bros. Discovery’s Max streaming service has followed Netflix’s lead in battling password sharing by selling Extra Member subscriptions in the U.S. for $8 per month. The move aims to give existing subscribers “greater flexibility and control over how they manage sharing their Max accounts,” the company says, promising a seamless transition from subscription squatting to authorized account user with “profile transfer available for extra member add-ons.” Those in the midst of binging, say, “White Lotus” will not see their viewing disrupted, according to WBD. Continue reading WBD Adds ‘Extra Member’ Option for Max Password Sharers

Netflix posted record profit of $2.9 billion in Q1, a 24 percent increase year-over-year that exceeded its forecast of $2.44 billion. Revenue was up nearly 13 percent to $10.54 billion for the three month period. The streamer attributed the strong performance to “slightly higher subscription and ad revenue and the timing of expenses.” The company is looking ahead to a strong 2025 and robust growth in upcoming years, with an internal goal of doubling annual revenue to $80 billion by 2030 and global ad sales aiming to hit $9 billion. Full-year revenue is forecast to land between $43.5 billion and $44.5 billion. Continue reading Netflix Reports Another Record Quarter with $2.9 Billion Profit

Adobe has taken a stake in business avatar firm Synthesia, which creates clones for corporate videos using generative AI. The investment of an undisclosed sum through Adobe Ventures was interpreted by one media outlet as a bet that the UK startup’s technology “will transform video production.” Adobe couched the move as a strategic alliance. The investment became public along with Synthesia’s announcement that it surpassed the $100 million mark for what the privately held company says qualifies as recurring annual revenue. Nvidia is also an investor. Continue reading Adobe Investment in Synthesia Could Fuel AI Video Production

Neptune is a new social video app aiming to compete in the short-form space against stalwarts like TikTok, YouTube Shorts and Instagram Reels. Currently in beta with a test base of about 1,000 users, Neptune has amassed a waitlist of 400,000, according to the company. The app’s noteworthy features include the ability to hide likes and follower counts, in furtherance of a desire to prioritize creativity over competition. That goal stems from founder Ashley Darling’s past experience working as a talent director at the beauty and wellness agency OPTYX, where her focus was “underestimated influencers.” Continue reading TikTok Challenger Neptune Lets Users Hide Likes, Followers

Amazon is predicting more than $100 billion in capital expenditure for AI in 2025. The majority of that will be invested in the AWS cloud division, according to Amazon President and CEO Andy Jassy, indicating Big Tech is not planning to back down on AI. Amazon’s Q4 profit hit $20 billion, an 88 percent increase over the same period in 2023, and full year profit was $59.2 billion, a 94 percent increase, on revenue of $638 billion, an 11 percent rise. On an earnings call, Jassy said the $26.3 billion in Q4 2024 capex spending “is reasonably representative” of what the company can be expected to spend on an annualized basis this year. Continue reading AWS Cloud Computing Generates Half of Amazon’s Q4 Profits

Snap has created a lightweight AI text-to-image model that will run on-device, expected to power some Snapchat mobile features in the months ahead. Using an iPhone 16 Pro Max, the model can produce high-resolution images in approximately 1.4 seconds, running on the phone, which reduces computational costs. Snap says the research model “is the continuation of our long-term investment in cutting edge AI and ML technologies that enable some of today’s most advanced interactive developer and consumer experiences.” Among the Snapchat AI features the new model will enhance are AI Snaps and AI Bitmoji Backgrounds. Continue reading Snap Develops a Lightweight Text-to-Video AI Model In-House

Santa Monica-based Snapchat announced a new Monetization Program for content creators this week that will feature expanded revenue opportunities and evolving rewards. Beginning February 1, creators that have at least 50,000 followers and post at least 25 times each month to Saved Stories or Spotlight videos will have the option to place ads in videos that are longer than one minute. Eligible creators would also need to meet one of the following criteria in the most recent month: 10 million Snap views, one million Spotlight views, or 12,000 hours of total view time. According to Snap, Spotlight video viewership is up 25 percent year-over-year. Continue reading Snapchat to Empower Creators with Video Monetization Plan

Nvidia sales were up 94 percent to $35 billion in the most recent quarter when profits more than doubled, to $19.3 billion, telegraphing the strength of the artificial intelligence boom that took the company from the top supplier of graphics boards for gaming PCs to the world’s most valuable public company with a market cap of $3.59 trillion. Nvidia founder and CEO Jensen Huang told analysts that demand for the company’s latest AI chip, Blackwell, has been “incredible,” driving projections of $3.59 trillion in revenue for the current quarter as customers begin to take shipments. Continue reading AI Boom Boosts Nvidia Sales by 94 Percent as Profits Double

The Walt Disney Company’s revenue rose to $91.4 billion for its fiscal year 2024, which ended September 28, a 2.8 percent increase from 2023. For the fourth quarter, revenue rose 6 percent to $22.6 billion, in line with analysts’ expectations. Company-wide, net profit climbed 74 percent in Q4, to $460 million, thanks largely to the strength of the streaming and theatrical film units. Improvements in the Disney+, Hulu and ESPN+ businesses marked the streaming sector’s second consecutive quarterly profit. Net profit for the year was a tick under $5 billion, up a whopping 111 percent from 2023. The results sent Disney shares up 6.2 percent on Thursday. Continue reading Disney Ends Fiscal Q4 Strong Thanks to Movies and Streaming

Reports indicate that Meta Platforms is preparing to introduce advertising to Threads, perhaps as soon as January. Threads is the year-old social platform it launched to compete with Twitter in July 2023, the same month Elon Musk was rebranding that platform as X. Meta is looking to begin Threads’ transition to ad support by initially allowing only a small group of advertisers to create and publish ads before opening the platform to the ad industry at large later in the year. Head of Instagram Adam Mosseri, who also runs Threads, has said Meta is “definitely” planning to open ad inventory on Threads. Continue reading Meta Readies Year-Old Threads for Advertising in Early 2025

Amazon reported major revenue and profit increases during its third quarter, beating Wall Street’s forecasts, based largely on the company’s e-commerce sales and increasing demand for its cloud services. Capital expenditure, which reached a record amount following Amazon’s recent investments in artificial intelligence, will maintain its momentum as the company plans $75 billion capex on developing generative AI services over 2024-2025. “The faster we grow demand, the faster we have to invest capital in data centers, network gear and hardware,” explained CEO Andy Jassy. “We invest in all that upfront in advance of when we can monetize it.” Continue reading Amazon Pushes AI, Records Growth in Q3 Revenue and Profit

Revenue reached an all-time high for Apple’s most recent quarter as iPhone sales experienced an uptick due in part to consumer excitement for the arrival of Apple Intelligence, the company’s heavily advertised set of AI tools. Total sales reached $94.9 billion for the quarter, up 6 percent year-over-year and exceeding the $94.5 billion that financial analysts had predicted. The company’s iPhone business reported sales of $46.2 billion, following disappointing consecutive quarters in the first half of the year. The AI boom resulted in strong quarters for other Big Tech leaders including Alphabet, Amazon, Meta Platforms and Microsoft. Continue reading Jump in iPhone Business Results in Record Quarter for Apple