Meta Microsoft and Google Surge Amid AI Spending Boom

Wall Street cheered this week as Meta, Microsoft, and Google’s parent company Alphabet all beat earnings and revenue expectations, sending the tech sector into a full-blown celebration. At the heart of this success? Artificial intelligence and lots of it.

On their latest earnings calls, all three companies credited their aggressive AI investment strategies for driving engagement, growth, and future projections. Microsoft admitted to exceeding their already lofty 42% spending increase target. Alphabet’s spending is up 7% year-over-year, and while Meta declined to provide an exact figure, CEO Mark Zuckerberg emphasized that their AI spending is both “substantial” and “aggressive.”

“Across Facebook, Instagram, and Threads, our AI recommendation systems are delivering higher quality and more relevant content,” Zuckerberg boasted, citing a 5% increase in time spent on Facebook and a 10% rise on Threads. “Video time spent on Instagram is up more than 30% since last year.”

In other words, the AI machine is working and it’s keeping users glued to their screens.

Even the Federal Reserve is getting in on the hype. Chairman Jerome Powell stated this week that he does not believe there’s a bubble in the AI market, pointing out that many firms in the space have “real earnings and business models.” That optimism was quickly validated when Nvidia, the chipmaker powering much of the AI infrastructure, became the most valuable company on Earth at a staggering $5 trillion market cap.

But here’s the question Americans should be asking: Is this AI arms race actually good for us?

Behind the glossy financials and nonstop praise lies a darker picture especially at Meta.

In its own investor filing, Meta disclosed that it is currently facing tens of thousands of lawsuits over claims that its platforms, namely Instagram and Facebook, are intentionally addictive and harmful to users, particularly teens and children.

“Beginning in January 2022, we became subject to litigation and other proceedings alleging that Facebook and Instagram cause ‘social media addiction’ in users,” the company admitted in its report.

Meta also warned that it cannot guarantee a favorable outcome in these cases a staggering admission from a company that derives nearly 100% of its revenue from advertising. And that advertising is directly tied to user engagement, including time spent on their platforms.

Which means: the more addictive the apps, the higher the profits.

• Over 90% of Meta’s revenue comes from ads driven by engagement metrics.

• Zuckerberg credits AI with keeping users on Meta platforms longer than ever.

• Meanwhile, child and teen mental health continues to deteriorate, with multiple studies linking social media overuse to depression, anxiety, and self-harm.

The bottom line? AI isn’t just about innovation or convenience it’s increasingly about control, data exploitation, and profit at any cost. While corporate shareholders may be cashing in now, American families and children may be footing the bill later.

This week’s numbers prove one thing: the AI boom is very real. But so is the growing disconnect between Silicon Valley’s priorities and the wellbeing of the public it claims to serve.

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