Goldman Sachs warns that the $770 billion capital expenditure planned by major tech companies for AI in 2026 will increase their asset intensity and depreciation costs, squeezing profit margins. This surge in spending forces traditionally asset-light firms like Amazon and Microsoft to become capital-intensive, leading to a projected decline in Return on Equity (ROE) by about 700 basis points next year. While this creates short-term profitability challenges, Goldman notes that long-term success depends on how well these companies monetize AI investments, with early signs from Q1 earnings showing positive revenue and margin growth.
Amazon is testing a new system called Full Facility Load Balancing (FFLB) to optimize worker movement in its robot-assisted warehouses. The system reallocates staff every three minutes based on workload changes, potentially saving nearly 7 million la...
The traditional 'Magnificent 7' tech stocks that dominated market returns are losing their exclusive spotlight as AI innovation broadens the field. New groups like the 'FAB 10' now include private AI leaders such as OpenAI, Anthropic, and SpaceX, alo...
Kyndryl has expanded its multi-year collaboration with Amazon Web Services (AWS) to help customers adopt and scale agentic AI while modernizing mission-critical workloads on AWS. The partnership includes investment in talent development, AI specializ...
The top ten US technology stocks now represent nearly 40% of the S&P 500's market capitalization, the highest concentration since the late 1990s dotcom bubble. This surge is driven by giants like Microsoft, Apple, NVIDIA, Amazon, Alphabet, and Meta, ...
Odyssey, an AI startup specializing in world models that simulate physical environments, raised $310 million in a Series B funding round, reaching a $1.45 billion valuation. The round was led by Natural Capital with participation from Amazon, AMD Ven...
