Section
Technology
Big Tech AI capex now drives three-quarters of US GDP growth
Capital expenditure on AI infrastructure by Amazon, Microsoft, Alphabet, Meta and Oracle is now responsible for roughly 75 per cent of all US economic growth in Q1 2026, according to estimates compiled this week. Stop the AI build-out and you print a recession headline within two quarters.
PayPal to cut 4,500 jobs in $1.5bn AI restructuring as it tries to 'become a technology company again'
PayPal will cut roughly 20 per cent of its workforce, more than 4,500 employees, over the next two to three years as part of a $1.5 billion cost-saving plan that the company is pitching as an artificial-intelligence-driven turnaround, chief executive Enrique Lores told investors on a first-quarter earnings call.
AI build-out costs are reaching consumer pockets, tech earnings show
The cost of the AI build-out has begun to flow through to consumer-electronics buyers, with the latest Big Tech earnings revealing rising prices on devices, subscriptions and cloud services as hyperscalers funnel profits into AI capacity.
