CNBC’s Steve Kovach joins 'Money Movers' to discuss Apple looking to significantly increase spending on AI and spending across the sector.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Leading technology companies are ramping up capital expenditures on artificial intelligence to address growing demand and maintain a competitive edge. Microsoft, Amazon, Alphabet, and Meta are each investing tens of billions of dollars, with Microsoft and Amazon leading at over $100 billion each. Apple is also increasing its AI spending, focusing on talent and computing resources, but has not disclosed specific figures and is presumed to spend less than its competitors.

Each company is pursuing a unique AI strategy. Meta is prioritizing core AI for advertising growth, though returns on generative AI investments are expected to take longer. Amazon and Microsoft are focusing on providing the cloud infrastructure for AI, while Alphabet supports both consumer-facing products and cloud services. Apple may be positioning itself to partner with established AI firms rather than building its own models from scratch, potentially leveraging existing technologies to power its AI initiatives.

Big tech ramps up AI spending

more than ever on AI ramping up capital expenditures well to outlooks and to levels that we've really never seen. Of course we heard from so many companies this week in terms of trying to meet that soaring demand for AI and stay ahead in that race. Steve Kovach looks at that in today's Tech Check. Steve. Yeah we got those fresh AI CapEx numbers David and within those numbers and the commentary from the college we're learning a lot about the different AI strategies for each of these companies. First of all everyone is increasing. Look at them right there. Microsoft and Paces spend 120 billion dollars. Amazon 118 billion dollars. Alphabet 85 billion. Meta 72 billion. The outlier here though is of course Apple. I talked to Tim Cook yesterday about this. He told me they're significantly increasing spending on artificial intelligence. That's for both talent and compute but no real number. Presumably though it's a lot less than those others are spending. I'm gonna get back to Apple in a second but first let's go over what this means for the other names here. Meta. They call it core AI that's driving the ad growth but CFO on the call said it's going to take longer for generative AI investments to pay off. Unclear what that looks like but we of course know Meta likes to scale first and then figure out the monetization later. As for Amazon and Microsoft they're not really consumer facing AI products. They're the cloud backbone of artificial intelligence. Microsoft's Azure growth is accelerating because of that and it needs all that capex to support growth. As for Alphabet supporting consumer products like Gemini search and other things plus the cloud backbone of course just like those other two cloud hyperscalers. Now let's get back to Apple because this one is really interesting because they're clearly not spending as much. Something really stuck out to me on the earnings call though. Cook was asked if AI models are becoming commoditized. He said he didn't want to comment on that because it would give away his strategy. My read into that Apple is poised to partner with an AI company like OpenAI or Anthropic to power Apple intelligence as Bloomberg previously reported a couple weeks ago. Of course it's a lot cheaper to build on top of this proven AI technology instead of building it from scratch guys. Yep it's all about the AI strategy. Thank you very much.

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Washington

Ukraine Invasion

Trump says both sides in Ukraine war will need to cede territory

A prominent Al Jazeera journalist, who had previously been threatened by Israel, was killed along with four colleagues and another journalist in an Israeli airstrike in an attack condemned by journalists and rights groups.

Jerusalem

Middle East Conflict

Israeli strike kills Al Jazeera journalists in Gaza

At last one person is dead, dozens are injured and two people are unaccounted for after an explosion at the U.S. Steel Clairton plant in Pennsylvania on Monday.

Clairton

At least 1 dead, dozens injured in U.S. Steel plant explosion

President Donald Trump has placed the Metropolitan Police Department under federal control and announced he's activating the National Guard to combat crime in Washington, D.C.

Trump deploying National Guard to Washington, D.C.

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair.

Alaska

Trump and Putin set to meet on Friday without Zelenskyy

U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday to discuss ending the war in Ukraine. Kyiv and its allies fear being sidelined and worry any deal could reward Moscow’s occupation of Ukrainian territory.

Kyiv

Ukraine fights for a seat at the table ahead of Trump-Putin summit

Israeli Prime Minister Benjamin Netanyahu is defending his decision to keep fighting in Gaza, despite protests at home and abroad. Debora Patta has the latest.

Tel Aviv-Yafo

Netanyahu defends plan to expand war in Gaza

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair. Willie James Inman has more from the White House.

Anchorage

Countdown begins to Trump-Putin meeting, without Zelenskyy

Violent weather hit several Midwest states over the weekend, with high winds being blamed for the death of at least one person in Nebraska and flash flooding prompting a state of emergency in Milwaukee County, Wisconsin.

Milwaukee

Milwaukee inundated with floodwaters, one dead in Nebraska

Thirty-seven major wildfires are currently burning across nine states in the western United States. Firefighters have made significant progress on the Canyon Fire in California, achieving 62% containment and allowing over 4,000 residents to return home, with minimal property loss reported.

Major fires continue to burn across western U.S.

President Donald Trump's envoy met with the Qatari prime minister on Saturday in Spain to discuss possible deals to end the Israel-Hamas war in Gaza, as Israel's military plans to expand into Gaza City. Meanwhile, families of Israeli hostages and Palestinians alike are pleading for peace.

Families of Israeli hostages, Palestinians plead for ceasefire

Renewed anti-government protests have taken place in Israel, where relatives and supporters of Israeli hostages held by Hamas demanded their release and an end to the brutal war Israel has been waging in Gaza.

Israeli anti-government protesters take to the streets in Tel Aviv

Ukraine's President Volodymyr Zelenskiy said that Kyiv "values and fully supports" a joint statement by European leaders that welcomed U.S. President Donald Trump's efforts to try to end the war, while emphasizing the need to pressure Russia and provide security guarantees for Kyiv.

Europe stresses need to protect Ukraine ahead of Trump-Putin meet

Ukrainian President Zelenskyy has firmly rejected Russia’s proposal requiring land concessions to end the war. Ukrainian and European officials have submitted a counterproposal to Washington.

Ukraine, Europe counter Russian ceasefire proposal ahead of US talks

There have been more protests, and counter protests, in several British towns and cities, outside of hotels used to accommodate asylum seekers. Some far-right protesters called for one of the hotels to stop housing migrants.

Bournemouth

UK: Anti-immigration & anti-racism protesters face off

A man who opened fire on the U.S. Centers for Disease Control and Prevention headquarters in Atlanta, firing into the complex from a pharmacy and killing a police officer, blamed the COVID-19 vaccine for making him depressed and suicidal, according to reports.

Atlanta

Vaccine conspiracy could be behind Atlanta shooting

The Gifford Fire burning through the rugged backcountry of California's Central Coast is now the state's largest wildfire of the year. It has reached so-called "mega-fire" status and is one of 38 large fires burning across nine states.

San Luis Obispo

Largest California wildfire of 2025 reaches "mega fire" status

President Trump is preparing to take another swing at a deal with President Putin during a high-stakes summit next Friday in Anchorage, Alaska. Ukraine President Volodymyr Zelenskyy says the country will never give up land, even if it means an end to the war.

Trump: Ukraine must cede land for ceasefire; Zelenskyy refuses

The United Nations Security Council is set to hold a rare Sunday meeting to discuss Israel's plan to intensify its 22-month war with Hamas by taking control of Gaza City. CBS News' Debora Patta reports on the conflict and the mounting humanitarian crisis.

Netanyahu's plan to occupy Gaza comes under fire

At least 200 protesters have been arrested at a rally showing solidarity for Palestinians in Gaza, outside the Parliament in London. Crowds are also demonstrating against a ban on the Palestine Action group, after it was designated as a terrorist organisation.

London

London:  Hundreds arrested during Palestine action protest

After almost four decades of a bloody conflict that until recently had no end in sight, Azerbaijan and Armenia signed a peace agreement in the presence of the US President Donald Trump. Notably absent in this historic moment is Russia, which no longer plays a central role in the South Caucasus.

Azerbaijan and Armenia sign historic agreement

Montana's governor said that the dayslong manhunt for the suspect in a bar shooting has ended. 45-year-old Michael Brown was taken into custody on Friday.

Anaconda

Montana bar shooting suspect captured after weeklong manhunt

President Trump announced Friday that he will hold a one-on-one meeting with Russian President Vladimir Putin on Aug. 15 in Alaska. The summit comes as Russia has been pushing to keep all the Ukrainian territory it gained from its invasion. Nancy Cordes and Margaret Brennan have the latest.

Trump, Putin to hold meeting in Alaska next week

The U.S. Department of Justice issued subpoenas in its investigation into New York Attorney General Letitia James. CBS News' Jake Rosen reports.

New York

Trump's DOJ subpoenas New York AG Letitia James

Vladimir Putin and Donald Trump will meet in the coming days, the Kremlin said on Thursday (August 7), as the U.S. president seeks a breakthrough to end the Ukraine war after voicing mounting frustration with his Russian counterpart and threatening him with new sanctions.

Moscow

Kremlin says Trump, Putin to meet soon; Ukraine seeks role for Europe

U.S. President Donald Trump's rushed deadline for Russia to strike a ceasefire deal or face more sanctions has arrived without much movement from Russian President Vladimir Putin.

Trump deadline for Russia to reach ceasefire arrives

Protesters in Israel are voicing their concerns about a plan approved by Prime Minister Benjamin Netanyahu's Security Cabinet to take over Gaza City. CBS News' Debora Patta has more.

Israel's security cabinet approves plan to take over Gaza City

Israeli Prime Minister Benjamin Netanyahu says Israel intends to take full military control of Gaza and push a new offensive, despite mounting international criticism over the war’s human toll and growing hunger crisis.

Big tech ramps up AI spending

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Rise of AI