Lana

Then they spend much of that cash buying, yep, you guessed it, computing power from those exact firms, sending the cash straight back where it came from.

And of course, if any one of those companies pulls back, that could easily send the whole sector into a tailspin.

It's expensive to compete in AI.

Firms need mountains of cash to cover electricity, chips, and data center space long before they make any serious profit.

That's one reason why OpenAI and Anthropic are still raising privately.

If they listed on public markets, every quarterly earnings call would turn into a grilling about when the losses might stop.

Private backers, though, are typically more strategic investors with deeper pockets and longer time horizons.

They'll tolerate years of heavy spending if it helps secure a big payoff down the line.

That's it for today.

I'm Lana.

I'll see you tomorrow.

Hey, I'm Lana with your Daily Brief for Thursday, January 29th.

Coming up, Meta and Microsoft both made more revenue and profit than expected, but investors only rewarded one of them.

And the U.S.

dollar hit a four-year low, and your portfolio may be more exposed than you'd like.

We'll also check in with Carl to get his answers to your burning questions.

More on the way, but first, a word from Guy at Finimize HQ.

Microsoft pulled in over $81 billion in revenue last quarter, about $1 billion more than expected, and beat profit forecasts too.

But investors were more focused on the costs involved.

See, increasingly wary of big tech's even bigger spending,