Big Tech’s $380 Billion AI Bet

Plus: Reddit Says AI Chatbots Aren’t Driving Traffic......Yet

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Today’s headline that’s got everyone talking? Tech’s biggest players, Alphabet, Amazon, Microsoft, and Meta, sent a unified message this earnings season: AI spending is only accelerating.

Let’s break it down.

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Top Stories

Nvidia Deepens Ties with South Korea to Build the Future of “Physical AI”: After two teen suicides linked to prolonged AI conversations, Character.AI is shutting down open-ended chat access for users under 18. The company will phase out these features by November 25 and pivot toward safer, creative tools like AI storytelling and short video generation. CEO Karandeep Anand says the move, though likely to drive teen users away, is a necessary step toward building a more responsible AI ecosystem and setting a new safety standard for the industry.

Figma Acquires AI Startup Weavy to Power Next-Gen Creative Tools: Figma announced the acquisition of Tel Aviv–based AI media generation startup Weavy, which will operate under a new brand called Figma Weave. The deal brings 20 Weavy team members to Figma and adds advanced image and video generation tools that let designers blend multiple AI models for precise creative control. Figma plans to eventually integrate Weavy’s technology into its broader design platform, enhancing how users create, edit, and refine visual content across projects.

Reddit Says AI Chatbots Aren’t Driving Traffic……Yet: Reddit CEO Steve Huffman said that AI chatbots like ChatGPT and Google’s Gemini are not significant sources of traffic for the platform, emphasizing that most visitors still come through Google Search and direct access. Despite licensing Reddit data to OpenAI and Google, Huffman noted that these partnerships haven’t yet translated into measurable referral growth. Reddit reported strong quarterly results with $585 million in revenue and over 116 million daily users, while continuing to develop AI-powered search tools and improve new user engagement.

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What’s Trending

Big Tech’s AI Spending Spree Shows No Signs of Slowing

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Tech’s biggest players, Alphabet, Amazon, Microsoft, and Meta, sent a unified message this earnings season: AI spending is only accelerating. Together, the four giants now project over $380 billion in capital expenditures this year as they race to expand data centers and infrastructure to meet what they call insatiable demand for artificial intelligence services.

Amazon and Alphabet saw their stocks rise after lifting forecasts and reporting strong results, while Microsoft and Meta fell despite solid earnings. Microsoft expects capital expenditures to climb sharply again in fiscal 2026, and Meta’s $70–72 billion AI budget raised investor concerns about unclear returns.

Meanwhile, skeptics are warning that AI investments may be inflating a tech bubble and straining global resources. Even with these record numbers, OpenAI’s reported $1 trillion in infrastructure deals with partners like Nvidia and Oracle dwarfs the rest of the sector.

Across the board, Big Tech’s AI ambitions remain massive and largely unquestioned even as analysts begin to ask how long this level of spending can continue before it collides with financial and physical limits.

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