Microsoft and Meta took different approaches to AI spending on January 29, 2026. While Microsoft lost $357 billion despite beating earnings, Meta saw a 10% stock jump after announcing a $135 billion increase in AI spending. Microsoft chose to limit GPU use for internal AI projects like Microsoft 365 Copilot, affecting Azure growth. In contrast, Meta showcased direct revenue impact from AI spending on advertising, with improvements in ad targeting and engagement. The market now values clear, measurable returns over speculative future potential in AI investments. Investors must demand proof of ROI in AI spending.

Read more at Barchart: Why Microsoft’s $70B AI Spending Backfired While Meta’s $135B Bet Paid Off