Big Tech line up $300 million in AI spending

Good morning and come back for the last day of this week. You made it! For today’s agenda:

Big Tech plans to spend $300 million in AI

The growth of Altman and his son’s “bromance”

Trump promises to crack down on tax loopholes

Iowa Farmers’ Trade War Fear

And the case of “Slow Bloomer”

Big Tech’s massive spending on artificial intelligence is expected to continue unconfirmed in 2025, increasing investor tension.

Microsoft, Alphabet, Amazon and Meta reported a total of $246 billion capital expenditures in 2024, up from $151 billion in 2023.

The scale of their spending ambitions, announced along with fourth quarter revenue, shocked the market and exacerbated the sale, which was caused by the release of innovative and inexpensive AI models from Chinese startup DeepSeek late last month I did.

Last night, Amazon became the latest tech group to outline spending plans. CEO Andy Jussy has put Google and Microsoft on top by forecasting capital expenditures of more than $100 million in this year’s capital expenditure. This is more than double the previous year’s $48 billion, from $77 billion in 2024.

The spending commitment has made Wall Street unsettled. Stocks of Alphabet, Amazon and Microsoft have declined in recent sessions. But Meta is against that trend. Learn more about the growing tensions around Big Technology here.

Here are other things that keep tabs today and over the weekend:

Economic Data: Labor Bureau releases non-farm pay and updates the January unemployment rate. Chile and Mexico have published inflation statistics for covering last month.

IPOS: Belgium-based cement producer Titan America lists its stocks on the New York Stock Exchange, seeking a valuation of up to $3.32 billion.

US Relations: Japanese Prime Minister Isba meets Donald Trump today in Washington for high stakes talks.

Results: CBOE Global Markets publishes annual results.

Election: Voters will go to polls in Kosovo, Liechtenstein and Ecuador on Sunday.

Super Bowl LIX: The 59th Super Bowl will be held in New Orleans on Sunday, with the Kansas City Chiefs competing with the Philadelphia Eagles.

Further 5 top stories

1. Donald Trump told lawmakers he wants to end the special tax treatment of private equity and hedge fund profits known as “famous benefits.” Push by Trump – Coming yesterday at a White House meeting with Capitol Hill’s Republican leadership, as the president tightens talks over a wider tax cut bill. The president has set up a potential conflict with some of America’s wealthiest investors. And read more about what your interest is.

Treasury Department: Federal judge yesterday barred the Treasury Department from handing over data from payment systems to outsiders, and one Elon Musk staff resigned from racist social media posting I was forced to do so.

USAID: The Trump administration plans to keep only hundreds of employees from thousands of staff at the U.S. International Development Agency, according to four people familiar with the issue.

2. Iran’s top leader Ayatollah Ali Khamenei has ruled out negotiations with President Donald Trump’s administration. President Masoud Pezeshkian’s diplomats from reformist government have suggested that in recent weeks it may be open to talks aimed at reassuring the world that Iran does not seek nuclear weapons. Ta. Tehran’s Najmeh Bozorgmehr heard Khamenei’s speech.

Other Middle Eastern News: Donald Trump says the Gaza Strip will be handed over to the US by Israel only after fighting in war-torn Palestinian territory, and that American troops will not be needed to maintain stability I stated.

3. Panama’s President Jose Raul Murino rejected a US statement saying that the Central American nation has agreed to allow American warships to pass through the Panama Canal for free, as a “lie.” His comments came the day after the US State Department said the Panama government agreed to halt billing fees for US government vessels passing through the strategic waterway. This is the latest in the growing diplomatic row.

4. India’s central bank has cut benchmark interest rates for the first time in almost five years to strengthen economic growth and reverse the widespread recession of the world’s most populous countries. The decision to cut headline reposal by 0.25 percentage points was unanimous. Read more about the Reserve Bank of India decision.

More Interest Rate News: The Bank of England hit British Prime Minister Rachel Reeves yesterday, cutting 2025 growth rate to 4.5% yesterday by a quarter point.

5. The US deal took a worst start to the volatility of policy 10 years after escalating rhetoric over Donald Trump’s election and tariffs. In January, the total number of US mergers and acquisitions collapsed by nearly 30%, according to LSEG data. Our transaction reporting team calculated the numbers.

How well did you get with this news this week? Take the quiz.

Big reading today

Although it was a turbulent week in US trade policy, the salvo at the beginning of a new trade war brought cold weather to the Midwest, particularly Iowa. In states where pigs are above 7-1, this week’s event will be Trump when China responds to US tariffs by taking away a 25% tax on US soybeans, beef, pork, wheat, corn and sorghum imports. The first term evoked painful memories. Another prospect of trade tensions is coming with American farmers already in tight spaces.

I also read and listen to it. . .

The chart of the day

Donald Trump’s new cryptocurrency has caused a flood of copycats and led to warnings that investors are at risk of being fooled. More than 700 copycat coins and spam coins have been sent to Trump’s digital wallets by people who are clearly trying to suggest that their work has his support, according to an analysis by the Financial Times. Members of Trump’s family, who have not launched their own cryptocurrency, have also influenced unofficial coins such as Baron, Ivanka and Eric.

Take a break from the news. . .

Do we fire people early because they’re too old? Composer Leosh Janaczek wrote his two most important music at the age of 74, and 28-year-old Vincent van Gogh was told, “You’re not an artist.” . . It’s too late. “Tim Harford claims “Evening Bloomers.”