Despite recent concerns over a potential slowdown in artificial intelligence (AI) demand, Big Tech giants Microsoft and Meta are signaling continued robust interest and investment in AI technology. Both companies recently reported earnings that showed significant increases in capital expenditure, underscoring their commitment to the AI boom. Microsoft announced that its cloud unit revenue for the first quarter of 2025 reached $42.4 billion, surpassing analyst expectations. Revenue from AI data center services grew by 20% year over year. A Jefferies analyst note highlighted that Microsoft processed a record number of AI tokens in its third financial quarter, further reinforcing the strength of AI demand. This positive news translated into a surge of over 9% in Microsoft’s stock price on Thursday. Meta, on the other hand, updated its full-year guidance on capital expenditure, increasing it from $60-65 billion to $64-72 billion. This substantial raise suggests that Meta is committed to expanding its AI infrastructure, driven by the high demand for AI services. Additionally, Microsoft’s CEO, Satya Nadella, addressed investor concerns about data center pausing during a conference call, stating that the company feels "very, very good" about the pace of its data center expansion. Google also reported a strong first-quarter performance, with its AI-focused cloud computing unit seeing a 28% year-over-year revenue increase to $12.3 billion. The company’s capital expenditure climbed from $12 billion to $17.2 billion year over year, aligning with Microsoft and Meta's aggressive spending strategies. However, these optimistic reports come with some caveats. Meta’s CFO, Susan Li, attributed some of the increased infrastructure spending to rising costs due to trade tariffs and supplier uncertainties. Both Google and Microsoft also experienced a slight decline in the revenue growth rates of their cloud units over the past two quarters, which might be due to cyclical trends in data center demand. Microsoft’s CFO, Amy Hood, noted that the company has a substantial "customer contracted backlog" of $315 billion for server technology, including graphics processing units (GPUs), essential for AI operations. This backlog indicates strong ongoing customer interest, even if some near-term indicators suggest fluctuations in demand. Overall, the earnings reports and statements from these Big Tech companies suggest that the AI boom is far from over. While some temporary slowdowns or fluctuations might occur, the fundamental drivers of AI demand remain intact, supported by significant investments and expanding infrastructure. Industry insiders are generally positive about these developments, noting that the heavy spending by Big Tech is necessary to build the robust infrastructure required for cutting-edge AI applications. This investment not only supports current demands but also positions these companies to capitalize on future advancements in AI technology. Companies like Amazon, Apple, and Nvidia, set to report earnings this month, could further shape the narrative, but for now, Big Tech’s message is clear: the AI wave continues to gain momentum.