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AI Spending Worries Cast Gloom over Alphabet, Microsoft

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
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AI Spending Worries Cast Gloom over Alphabet, Microsoft

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo

Investors appear to be losing patience with Big Tech's prodigious artificial intelligence investments this week after Meta Platforms signaled deeper spending and a long road to profitability.
The concession from Meta in its quarterly report late on Wednesday cast a cloud over Microsoft and Alphabet , which will both report quarterly earnings on Thursday, Reuters said.
Meta's stock sank 15% in extended trade after it forecast higher AI spending next year, while Microsoft was down 2%, Alphabet fell 3% and Nvidia dropped 1.4% in reaction.
Wall Street's heavyweight tech-related companies have been locked in a fierce battle to advance generative AI, which can create text, videos and photos from prompts and is seen as the next frontier in tech.
During Meta's earnings conference call, analysts peppered CEO Mark Zuckerberg with questions about how the company was pacing its AI investments. One analyst asked whether Meta was spending more because it saw an even bigger opportunity from AI.
"I think we've gotten more ambitious and optimistic on AI," Zuckerberg responded, pointing to Meta's recent launches of new AI models. "So all of that basically encourages me to make sure that we're investing to stay at the leading edge of this."
Alphabet and Microsoft both said earlier this year when they reported fourth-quarter results that they expected rising AI costs. The investor reaction on Wednesday indicated deepening concerns.
In a research note on Monday about Alphabet, analysts from New Street Research said the potential for materially higher capital expenditures was a worry ahead of results on Thursday.
The research firm said it now expects Alphabet's full-year capital expenditures to be $45.9 billion, up from its previous estimate of $42.7 billion.
Google has been working to catch up in the generative AI race and released Gemini, a model that can understand and create different types of information including text, audio and video.
Creating content with generative AI is energy-intensive, and Zuckerberg cited the cost as a reason for Meta's higher expenses.
Meanwhile, Microsoft has positioned itself to be a winner in AI due to its partnership with OpenAI, which kicked off the generative AI craze last year with ChatGPT, said analysts from Jefferies in a note on March 31.
Microsoft has integrated chatbots into its suite of Office products and is planning to invest more in data centers.
Industry-wide, shareholders are now focused on looking for revenue, including pricing models and whether customers can find use cases that justify the cost of generative AI, Jefferies wrote.
"Last year was spent dreaming of gen AI's potential," the analysts wrote. "This year will be about moving forward with concrete steps."

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Technology

Fake Images, Videos in Wartime: How to Tell Fact from Deepfakes

Misinformation spreads rapidly on social media during crises and conflicts (Shutterstock)
Misinformation spreads rapidly on social media during crises and conflicts (Shutterstock)
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Fake Images, Videos in Wartime: How to Tell Fact from Deepfakes

Misinformation spreads rapidly on social media during crises and conflicts (Shutterstock)
Misinformation spreads rapidly on social media during crises and conflicts (Shutterstock)

As tensions escalate across several fronts in the Middle East, information is spreading almost as quickly as the events themselves.

Social media platforms are often the first place where images, videos, and reports of alleged attacks or military developments appear.

But alongside legitimate information, a wave of misleading or fabricated content is also circulating online, making it increasingly difficult to separate fact from fiction.

A Growing Digital Challenge

Cybersecurity experts warn that the rapid spread of misinformation, particularly through manipulated videos and deepfake technologies, has become a growing digital threat during periods of geopolitical instability.

Maher Yamout, Lead Security Researcher at Kaspersky, told Asharq Al-Awsat that distinguishing reliable information from false narratives becomes especially critical during emergencies, when emotions run high, and people tend to share content quickly without verifying it.

“With developments unfolding in the Middle East, government authorities in Gulf Cooperation Council countries have warned against publishing or circulating information from unknown sources,” he said.

“Fake news, misleading or inaccurate information presented as real news, becomes more dangerous during emergencies.”

Misinformation Spreads Fast

Fake news is not new, but its scale and speed have changed dramatically with the rise of social media and artificial intelligence tools. During periods of geopolitical tension, unverified reports or manipulated videos can spread within minutes, reaching millions before fact-checkers can respond.

Experts generally divide fake news into two main categories. The first involves fully fabricated content designed to influence public opinion or attract traffic to specific websites. The second contains elements of truth but presents them inaccurately because the author failed to verify all the facts or exaggerated certain details.

Both can confuse audiences during crises, particularly when users rely on social media rather than trusted news outlets for updates.

Authorities in several countries have also warned that sharing inaccurate information, even unintentionally, may expose users to legal accountability.

Governments and digital security experts are therefore urging greater digital awareness and responsibility when sharing information during sensitive periods.

AI-Powered Deception

Artificial intelligence has added a new layer to the misinformation problem through so-called deepfake technologies, fabricated videos created using machine learning techniques such as face swapping or synthetic visual generation.

In some cases, authentic footage can be altered to appear as if it documents events that never occurred.

Yamout said verifying information has become more important than ever with the spread of deepfakes.

“Artificial intelligence makes it possible to combine different video clips to produce new scenes showing events or actions that never happened in reality, often with highly realistic results,” he said.

Such technology can make manipulated videos appear convincing and potentially mislead users, especially when they circulate in emotionally charged contexts. Edited clips may appear to show attacks, military movements, or political statements that never took place.

Even when these videos are later debunked, their initial spread can still trigger confusion or public anxiety.

How to Verify Information

Cybersecurity experts say users themselves play a key role in limiting the spread of misinformation. While platforms and regulators are developing tools to detect fake content, individuals can take simple steps to verify information before sharing it.

The first step is checking the source. Websites that publish false information may contain spelling errors in their web addresses or use unusual domains that mimic well-known media outlets.

Yamout advises carefully reviewing the website address and checking the “About Us” section on unfamiliar sites. It is generally safer to rely on official sources such as government websites or trusted media organizations.

Users should also verify the identity of the author or the organization behind the report. If the author is unknown or lacks clear expertise in the subject, the information should be treated cautiously.

Comparing reports with other credible sources is also important. Professional news organizations follow editorial guidelines and verification procedures, meaning major events are typically reported by multiple reputable outlets.

Yamout also highlighted the importance of checking dates and timelines, noting that some misleading content recirculates old events and presents them as recent developments.

He added that social media algorithms can create so-called “echo chambers,” where users are shown content that aligns with their existing views and interests. This makes it essential to consult diverse and reliable sources before forming conclusions.

Playing on Emotions

Many fake news stories are designed to provoke strong emotional reactions. Sensational headlines or dramatic clips are often crafted to trigger fear, anger, or shock, emotions that increase the likelihood that users will quickly share the content.

“Many fake news stories are written in a clever way to provoke strong emotional reactions,” Yamout said.

Maintaining critical thinking and asking a simple question — why was this story written? — can help users avoid spreading misinformation, he added.

This dynamic is amplified on social media platforms, where algorithms tend to promote content that generates strong engagement. Emotionally charged posts can therefore spread faster than balanced reporting.

Spotting Signs of Manipulation

Images and videos themselves may provide clues that they have been altered. Edited photos may display distorted background lines, unnatural shadows, or unrealistic skin tones.

In manipulated videos, inconsistencies may appear in lighting, eye movement, or facial expressions. While these signs are not always easy to detect, particularly on smartphones, they can raise doubts about the authenticity of widely shared clips.

A Shared Digital Responsibility

Experts say limiting the spread of misinformation during crises requires cooperation among governments, technology companies, media organizations, and users.

Yamout said the simplest rule may also be the most effective: “If you are not sure the content is accurate, do not share it.”

Responsible sharing can help curb the spread of misinformation and protect digital communities.

As digital platforms continue to shape how information travels across borders, the ability to critically evaluate online content is becoming an essential skill.

During periods of geopolitical tension and conflict, when rumors and facts can blur, the challenge is not only cybersecurity but also protecting the credibility of information itself.

Technology

Adobe Shares Drop after CEO Exit Adds to AI-disruption Concerns

FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
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Adobe Shares Drop after CEO Exit Adds to AI-disruption Concerns

FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo

Adobe's shares plunged 9% in premarket trading on Friday after the Photoshop maker said CEO Shantanu Narayen would step down after 18 years at the helm, unsettling investors already wary of AI-driven disruptions to the design software market.

The longtime CEO's exit comes at a critical juncture as Adobe works to reassure investors it can keep pace with sweeping changes brought by artificial intelligence in the software landscape.

It follows a broader slide in software stocks after fears that ⁠AI agents could ⁠supplant some traditional applications that led to a nearly $1 trillion rout in software stocks globally last month.

"The loss of an iconic leader at a time of peak uncertainty around the future of software more broadly, and the positioning of Adobe ⁠specifically in this new GenAI world is bound to further investor uncertainty and anxiety around the shares," said analysts at Morgan Stanley.

Adobe's shares are down about 23% so far this year, extending a slide that has stretched over the past two years.

The company, which makes Illustrator, Premiere Pro and other tools for creative professionals, is among a group of SaaS providers including Salesforce that have ⁠struggled to win ⁠new clients amid a wave of AI start-ups.

On Thursday, Adobe reported double-digit growth in total revenue and customer subscription segments in the first quarter, reflecting resilient spending on its product suite.

"After steering the Adobe ship through rough seas over the past several years, several data points from the most recent quarter suggest the captain (Narayen) may have brought this franchise into a safe harbor, from which it can continue to thrive," Morgan Stanley analysts said.

Technology

AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
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AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)

Chinese entrepreneur Frank Gao used to spend long hours running his social media accounts but now outsources the chore to AI agent tool OpenClaw, which is taking the country by storm despite official warnings over cybersecurity.

OpenClaw, created in November by an Austrian coder, differs from bots like ChatGPT because it can execute real-life tasks such as sending emails, organizing files or even booking flight tickets.

"Since January, I've spent hours on the lobster every day," Gao told AFP, referring to OpenClaw's red crustacean mascot. "We're family."

After downloading OpenClaw, users connect it to existing artificial intelligence models of their choice, then give it simple instructions through instant messaging apps, as if to a friend or colleague.

The tool has fascinated tech circles worldwide but particularly in China, gripping tech-savvy companies and individuals keen to keep up with the next big thing in AI.

Hundreds of people queued at tech giant Baidu's Beijing headquarters this week for an OpenClaw event where engineers helped attendees set up their "little lobsters".

It was one of many similar meetups to experiment with the tool, which are drawing crowds from Shanghai to Shenzhen.

Some municipalities, including the eastern cities of Wuxi and Hangzhou, have pledged hundreds of thousands of dollars to support the adoption and development of OpenClaw and other AI agents.

But the lobster fever, as it has been dubbed, has also sparked security concerns.

"What's truly scary about agents like OpenClaw is this: once they have your digital keys, they can theoretically access all the services you've authorized, and can autonomously decide when to activate them," Gao warned.

"The attacker effectively gains a 'master key' to your digital identity," said the engineer, who has named his OpenClaw agent "Q" after his business name QLab.

- 'Use with caution' -

Chinese national cybersecurity authorities and Beijing's ministry of industry and IT have warned of the risks of OpenClaw hacks.

"Use intelligent agents such as 'lobster' with caution," national IT research institute expert Wei Liang advised government agencies, public institutions, companies and individuals in a message on state media.

The mixed signals of rolling out policy incentives while issuing warnings "reflects the authorities' cautious tolerance towards 'lobster fever'," Zhang Yi, founder of tech consultancy iiMedia, told AFP.

Austrian programmer Peter Steinberger, who built OpenClaw to help organize his digital life, was hired last month by ChatGPT maker OpenAI.

Meanwhile, a separate team of coders that made Moltbook, a Reddit-like pseudo social network where OpenClaw agents converse, are joining Meta.

Top Chinese tech companies have also been quick to get involved.

The likes of Tencent, Alibaba, ByteDance and Baidu are offering simplified installation and affordable coding plans to help users who want to host OpenClaw agents on their cloud servers -- seen as safer than downloading it onto a personal computer.

In recent days AI companies big and small have also launched their own competing agent tools, such as ByteDance's ArkClaw, Tencent's WorkBuddy and Zhipu AI's AutoClaw.

The relatively low cost for cloud deployment of OpenClaw in China, subsidised by big tech firms, is one factor behind its popularity, said Gao Rui, a senior product manager at Baidu AI Cloud.

"For most people, it's likely just the price of a cup of coffee... which is why people will probably be keen to give it a try," she told AFP.

- FOMO -

Fear of missing out is also a big driver behind OpenClaw's success in China, said Chen Yunfei, an AI developer who created a popular online guide for using the tool.

"Most Chinese people are quite studious and forward-looking, so when confronted with new things, they might have stronger feelings" of so-called FOMO, he said.

Xie Manrui, a programmer whose latest project is a visualized system for managing OpenClaw agents, said the tool had arrived "at the right moment" to change perceptions in China of what AI can do.

"For many, AI is merely a clever chatbot that talks all the time but cannot act," he said.

Either way, it has piqued the curiosity of many young users.

At the Baidu event in Beijing, 24-year-old college student Zheng Huimin was waiting patiently in line with her friends.

"I'd like to give it a go to see what tasks it can actually help me accomplish," she told AFP.