Alibaba Group projects AI-driven annualised recurring revenue to hit $4.42 billion by year-end, with AI products expected to generate over 50% of cloud-computing revenue within a year, driven by triple-digit growth in AI-related products for the 11th consecutive quarter.
Four of the Magnificent Seven tech stocks reported quarterly results, with Amazon, Alphabet and Microsoft beating expectations thanks to double-digit cloud computing growth driven by AI adoption. Meta missed expectations and saw its stock fall 5% after announcing increased capital expenditures. The companies plan to spend $650bn collectively on AI infrastructure in 2026, while over 92,000 tech workers have been laid off globally this year as AI replaces human labor.
