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Microsoft CEO Satya Nadella, right, speaks as OpenAI CEO Sam Altman looks on during the OpenAI DevDay event in San Francisco on Nov. 6, 2023.

Justin Sullivan | Getty Images

OpenAI’s head-spinning investments announced in recent months have led to increased scrutiny of the hyperscalers, which are all racing to develop infrastructure for the accelerating artificial intelligence boom.

Investors are about to get a lot of new information to digest.

Microsoft, Alphabet, Meta and Amazon announce quarterly results this week. While they all have very different businesses – and compete in certain areas – Wall Street is going to be laser focused on one particular line item: capital expenditures.

“You’re just seeing this massive commitment on the part of companies to really invest,” said Melissa Otto, head of Visible Alpha Research at S&P Global. “It’s going to be interesting to hear what they have to say about their investment trajectory, if they see this slowing down.”

For almost three years, the market has been swept up in an AI frenzy, as generative AI chatbots like OpenAI’s ChatGPT and Google’s Gemini have shown their power to potentially reshape vast swaths of the economy.

The biggest chokepoint today is a lack of sufficient compute capacity, and not nearly enough power.

AI companies are disclosing plans to build out massive supercomputing data centers, typically based around Nvidia AI chips, to handle the expected load. OpenAI, a privately held company valued at $500 billion, has set itself apart, announcing roughly $1 trillion worth of future infrastructure developments with partners including Nvidia, Oracle and Broadcom.

Visualizing OpenAI and Nvidia’s tangled web of AI deals

Aside from OpenAI, the biggest builders include the four internet hyperscalers that are set to post earnings this week. In each case, investors want to see aggressive plans and a clear strategy. But unlike OpenAI, they can’t go too big out of concern that public investors will hammer their stocks.

Morgan Stanley analysts said in a note last week that they expect total hyperscaler capital expenditures to grow 24% next year to nearly $550 billion.

The companies also have to show revenue growth, especially Amazon, Microsoft and Google, which are competing for AI business in their cloud units.

“There are trillions of dollars that are being earmarked to be spent relative to hundreds of billions of dollars of free cash flow generated by the Mag 7,” Impactive Capital co-founder Lauren Taylor Wolfe told CNBC’s “Squawk on the Street” last week, suggesting that companies have yet to see significant returns on investment.

Analysts will be also be looking to see how Microsoft’s Copilot AI features are driving growth in its other businesses. And whether Google’s AI investments are helping it defend its core search and ads business as more consumers turn to ChatGPT for information. Meta has said that its generative AI technology has bolstered the company’s ability to target ads.

The other megacap company reporting this week is Apple. The iPhone maker has thus far been in a separate category in AI because it doesn’t operate a public cloud service or build major large language models that it shares with the public.

However, Apple CEO Tim Cook said in June that the company would be increasing its capital expenditures for AI, so it’s likely to be a bigger topic in Thursday’s earnings report.

Here’s what the hyperscalers have said so far, and what Wall Street is expecting:

Microsoft

Microsoft CEO Satya Nadella speaks at Microsoft Build AI Day in Jakarta, Indonesia, on April 30, 2024.

Adek Berry | AFP | Getty Images

Microsoft said in July that it expected to spend $30 billion in capital expenditures during the quarter, which would represent annual growth of over 50%.

But CFO Amy Hood told investors at the time that while capex would grow in fiscal 2026, which began in July, it would be slower growth than in fiscal 2025.

Analysts expect capex to increase 42% this fiscal year to $91.3 billion, following growth of 45% in the prior year, according to FactSet.

Hood said on the last earnings call that the company faces infrastructure shortages relative to AI demand.

“I talked about it, my gosh, in January, and said I thought we’d be in better supply-demand shape by June,” she said said. “And now I’m saying I hope I’m in better shape by December.”

Alphabet

Google CEO Sundar Pichai gives a thumbs up as he arrives to attend the Artificial Intelligence (AI) Action Summit at the Grand Palais in Paris, France, February 11, 2025.

Benoit Tessier | Reuters

Alphabet said in July that it expected capex of $85 billion this year, up from a previous target of $75 billion.

CFO Anat Ashkenazi told investors at the time that the company planned to raise that figure again in 2026, and that Alphabet monitors demand to make sure the money isn’t wasted.

“We have a highly rigorous process to determine the demand behind it, and then the allocation of the compute associated with our technical infrastructure investments, ensuring that we’re utilizing that appropriately,” Ashkenazi said.

She added that Google’s capital expenditures also support the company’s own products, like Gmail, Google Maps and YouTube, in addition to serving cloud customers and AI lab DeepMind.

Google is likely going to have to add capacity after Anthropic, a major AI lab, said it would reserve as many as 1 million of the company’s TPU AI chips next year, a deal worth tens of billions of dollars.

For 2025, analysts expect capex growth of 57% to $82.4 billion, following growth of 63% last year, according to FactSet. They see growth moderating to 12% next year to $92.6 billion.

Meta

Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company’s headquarters in Menlo Park, California, U.S., Sept. 17, 2025.

Carlos Barria | Reuters

Over the summer, Meta boosted the midpoint of its 2025 capex forecast by $1 billion to $69 billion.

Although Meta doesn’t have a cloud service it rents to customers, CEO Mark Zuckerberg has touted the importance of the company’s AI infrastructure as giving it an edge in ad delivery and in creating new kinds of feeds, like its AI-generated video app Vibes.

“We’re making all these investments because we have conviction that superintelligence is going to improve every aspect of what we do,” Zuckerberg said in July.

Zuckerberg has also developed a relationship with Nvidia CEO Jensen Huang, who said at an investor event in October that Facebook used Nvidia chips to create highly successful ad targeting algorithms.

In 2021, Meta’s ad business suffered after Apple implemented a new privacy system that made it harder to target users on mobile devices. Huang said that in figuring out a solution to the problem, Meta “fixed that with AI powered by Nvidia GPUs.”

Analysts surveyed by FactSet expect Meta to show capex expansion this year of 84% to $68.4 billion, accelerating from 37% growth in 2024. They expect 42% growth in 2026 to $97 billion.

Amazon

Amazon CEO Andy Jassy speaks at a company event in New York on Feb. 26, 2025.

Michael Nagle | Bloomberg | Getty Images

Three months ago, Amazon CEO Andy Jassy tried to reassure investors that Amazon Web Services has maintained a “pretty significant” leadership position relative to its cloud rivals and said he feels optimistic about its AI offerings. But Microsoft Azure and Google’s cloud unit have been growing faster.

Amazon plans to spend over $100 billion on capital expenditures this year. It didn’t raise its target in July, but signaled capex of about $31 billion per quarter in the last two periods of the year.

“We will continue to invest more capital in chips, data centers, and power to pursue this unusually large opportunity that we have in generative AI,” CFO Brian Olsavsky told investors.

Olsavsky said much of Amazon’s spending was on the company’s custom AI chip, called Trainium, as well as other technology infrastructure. But he noted that Amazon’s expenditures also support the company’s fulfillment and transportation network that deliver packages to users.

Analysts are calling for 41% capex growth this year to $117 billion, slowing from 57% growth in 2024, according to FactSet. They see growth of about 8% next year to $126.6 billion.

Apple

FILE PHOTO: Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen.

Mike Segar | Reuters

Notable Capital's Jeff Richards: As long as end demand is there, tech capex will be fueled

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YouTube’s new AI deepfake tracking tool is alarming experts and creators

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YouTube's new AI deepfake tracking tool is alarming experts and creators

Beata Zawrzel | Nurphoto | Getty Images

A YouTube tool that uses creators’ biometrics to help them remove AI-generated videos that exploit their likeness also allows Google to train its artificial intelligence models on that sensitive data, experts told CNBC.

In response to concern from intellectual property experts, YouTube told CNBC that Google has never used creators’ biometric data to train AI models and it is reviewing the language used in the tool’s sign-up form to avoid confusion. But YouTube told CNBC it will not be changing its underlying policy.

The discrepancy highlights a broader divide inside Alphabet, where Google is aggressively expanding its AI efforts while YouTube works to maintain trust with creators and rights holders who depend on the platform for their businesses.

YouTube is expanding its “likeness detection,” a tool the company introduced in October that flags when a creator’s face is used without their permission in deepfakes, the term used to describe fake videos created using AI. The feature is being expanded to millions of creators in the YouTube Partner Program as AI-manipulated content becomes more prevalent throughout social media.

The tool scans videos uploaded across YouTube to identify where a creator’s face may have been altered or generated by artificial intelligence. Creators can then decide whether to request the video’s removal, but to use the tool, YouTube requires that creators upload a government ID and a biometric video of their face. Biometrics are the measurement of physical characteristics to verify a person’s identity.

Experts say that by tying the tool to Google’s privacy policy, YouTube has left the door open for future misuse of creators’ biometrics. The policy states that public content, including biometric information, can be used “to help train Google’s AI models and build products and features.”

“Likeness detection is a completely optional feature, but does require a visual reference to work,” YouTube spokesperson Jack Malon said in a statement to CNBC. “Our approach to that data is not changing. As our Help Center has stated since the launch, the data provided for the likeness detection tool is only used for identity verification purposes and to power this specific safety feature.”

YouTube told CNBC it is “considering ways to make the in-product language clearer.” The company has not said what specific changes to the wording will be made or when they will take effect.

Experts remain cautious, saying they raised concerns about the policy to YouTube months ago.

“As Google races to compete in AI and training data becomes strategic gold, creators need to think carefully about whether they want their face controlled by a platform rather than owned by themselves,” said Dan Neely, CEO of Vermillio, which helps individuals protect their likeness from being misused and also facilitates secure licensing of authorized content. “Your likeness will be one of the most valuable assets in the AI era, and once you give that control away, you may never get it back.”

Vermillio and Loti are third-party companies working with creators, celebrities and media companies to monitor and enforce likeness rights across the internet. With advancements in AI video generation, their usefulness has ramped up for IP rights holders.

Loti CEO Luke Arrigoni said the risks of YouTube’s current biometric policy “are enormous.”

“Because the release currently allows someone to be able to attach that name to the actual biometrics of the face, they could create something more synthetic that looks like that person,” Arrigoni said.

Neely and Arrigoni both said they would not currently recommend that any of their clients sign up for likeness detection on YouTube.

YouTube’s head of creator product, Amjad Hanif, said YouTube built its likeness detection tool to operate “at the scale of YouTube,” where hundreds of hours of new footage are posted every minute. The tool is set to be made available to the more than 3 million creators in the YouTube Partner Program by the end of January, Hanif said.

“We do well when creators do well,” Hanif told CNBC. “We’re here as stewards and supporters of the creator ecosystem, and so we are investing in tools to support them on that journey.”

The rollout comes as AI-generated video tools rapidly improve in quality and accessibility, raising new concerns for creators whose likeness and voice are central to their business.

YouTuber Doctor Mike, whose real name is Mikhail Varshavski, makes videos reacting to TV medical dramas, answering questions on health fads and debunking myths that have flooded the internet for nearly a decade.

Doctor Mike

YouTube creator Mikhail Varshavski, a physician who goes by Doctor Mike on the video platform, said he uses the service’s likeness detection tool to review dozens of AI-manipulated videos a week.

Varshavski has been on YouTube for nearly a decade and has amassed more than 14 million subscribers on the platform. He makes videos reacting to TV medical dramas, answering questions on health fads and debunking myths. He relies on his credibility as a board-certified physician to inform his viewers.

Rapid advances in AI have made it easier for bad actors to copy his face and voice in deepfake videos that could give his viewers misleading medical advice, Varshavski said.

He first encountered a deepfake of himself on TikTok, where an AI-generated doppelgänger promoted a “miracle” supplement.

“It obviously freaked me out, because I’ve spent over a decade investing in garnering the audience’s trust and telling them the truth and helping them make good health-care decisions,” he said. “To see someone use my likeness in order to trick someone into buying something they don’t need or that can potentially hurt them, scared everything about me in that situation.”

AI video generation tools like Google’s Veo 3 and OpenAI’s Sora have made it significantly easier to create deepfakes of celebrities and creators like Varshavski. That’s because their likeness is frequently featured in the datasets used by tech companies to train their AI models.

Veo 3 is trained on a subset of the more than 20 billion videos uploaded to YouTube, CNBC reported in July. That could include several hundred hours of video from Varshavski.

Deepfakes have “become more widespread and proliferative,” Varshavski said. “I’ve seen full-on channels created weaponizing these types of AI deep fakes, whether it was for tricking people to buy a product or strictly to bully someone.”

At the moment, creators have no way to monetize unauthorized use of their likeness, unlike the revenue-sharing options available through YouTube’s Content ID system for copyrighted material, which is typically used by companies that hold large copyright catalogs. YouTube’s Hanif said the company is exploring how a similar model could work for AI-generated likeness use in the future.

Earlier this year, YouTube gave creators the option to permit third-party AI companies to train on their videos. Hanif said that millions of creators have opted into that program, with no promise of compensation.

Hanif said his team is still working to improve the accuracy of the product but early testing has been successful, though he did not provide accuracy metrics.

As for takedown activity across the platform, Hanif said that remains low largely because many creators choose not to delete flagged videos.

“They’ll be happy to know that it’s there, but not really feel like it merits taking down,” Hanif said. “By and far the most common action is to say, ‘I’ve looked at it, but I’m OK with it.'”

Agents and rights advocates told CNBC that low takedown numbers are more likely due to confusion and lack of awareness rather than comfort with AI content.

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MongoDB stock skyrockets 27% on AI, cloud database platform growth

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MongoDB stock skyrockets 27% on AI, cloud database platform growth

MongoDB CEO: Still early in AI, our strength is driven by core business

MongoDB shares ripped more than 25% higher on Tuesday after the company blew past Wall Street’s third-quarter expectations and lifted its forecast as its cloud database platform gained traction with customers.

The database software provider posted adjusted earnings of $1.32 per share on $628 million in revenue. That topped the 80 cents adjusted per share and $592 million in revenue expected by analysts polled by LSEG. Revenues grew 19% from last year.

MongoDB said its Atlas platform grew 30% from a year ago and accounted for 75% of total revenues for the quarter. The company said it ended the period with more than 60,800 Atlas customers, with revenues expected to grow 27% for the platform in the current period.

“Q3 was an exceptional quarter that was driven by our continued go-to-market execution and the broad-based demand we are seeing across business,” said CEO Chirantan “CJ” Desai in his first earnings call at the helm of the company.

Dev Ittycheria, who ran the company for 11 years and took it public, stepped down in November.

Read more CNBC tech news

Desai believes the company is approaching a “once in a lifetime” opportunity as artificial intelligence, cloud and data trends reach a “true inflection point.” He told investors he plans to focus on building customer relationships and innovation in the coming months.

Citing those tailwinds, MongoDB boosted its guidance for the full year on Atlas growth and tailwinds from ongoing artificial intelligence demand. The company now anticipates revenues between $2.434 billion and $2.439 billion, up from prior guidance of $2.34 billion and $2.36 billion.

Analysts at Bernstein lifted their price target on shares to $452, expecting the stock to continue benefiting from accelerating growth as other software companies struggle.

“We expect strong consumption demand, potential upside from AI, and benefits from an easing interest rate environment to continue driving re-rating upside in the near term,” they wrote.

Shares have popped more than 40% this year.

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Former cyber spy raises $60 million to fight AI threats

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Former cyber spy raises  million to fight AI threats

Ben Seri (CTO), Sanaz Yashar (CEO), Snir Havdala (CPO) of Zafran Security.

Courtesy: Eric Sultan | Zafran

Zafran Security, a cybersecurity startup created by an Iranian-born spy whose story helped inspire the hit Apple TV series “Tehran,” has raised $60 million, the company said Tuesday.

Sanaz Yashar, the former spy and CEO of Zafran, told CNBC that the funding round comes as a result of the accelerating speed and pace of cyberattacks due to the on-going AI boon. Zafran uses artificial intelligence and automation technology to manage threat exposure.

It’s “becoming much more severe that it was even a year ago,” she said in an exclusive interview.

The round brings Zafran’s total funding to $130 million since its founding in 2022. Zafran did not disclose the valuation at which it raised, but the startup said it has more than tripled annual recurring revenue since its last round for $70 million in September 2024. Annual recurring revenue is a term often used to measure income expected on a 12-month basis for a product.

The company plans to use the money to hire more people, Yashar said.

Menlo Ventures led the funding round, with participation from Sequoia Capital and Cyberstarts, which was an early investor in the startup Wiz that sold to Google for $32 billion in March.

Companies are looking for ways to reinvigorate their cybersecurity capabilities as AI reshapes the sophistication and capabilities of cyber criminals.

Besides Wiz, Palo Alto Networks in July announced that it acquired identity security provider CyberArk for $25 billion.

Yashar and co-founders Ben Seri and Snir Havdala created Zafran following an investigation into a ransomware attack on a hospital in Israel.

“The data was there,” Yashar told CNBC, adding that cohesive security tools might have prevented the attack. “If the security tools were talking to each other, they could block it.”

Yashar, who moved to Israel from Tehran at 17, served for 15 years in an elite cybersecurity intelligence unit within the Israel Defense Forces known as Unit 8200. She also led major investigations at threat detection firm FireEye and Mandiant, which Google bought in 2022.

Many famous cybersecurity companies have originated from Unit 8200 alum, including Palo Alto Networks, Check Point Software and CyberArk.

Zafran customers include healthcare, financial services, insurance, technology and Fortune 500 companies, Yashar said.

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