Amazon shares dropped 8% in premarket trading on Friday after the company’s hefty capital expenditure plans deepened investor worries over Big Tech’s spending spree on artificial intelligence. Massive AI spending by companies – estimated to be more than $600 billion this year – have raised doubts among investors over the prospects of immediate returns from the huge capital outlays.
They also fear that rapidly improving AI tools could eat into demand for traditional software, squeezing profit margins, resulting in a broader selloff…
