Ep. 092 | Big Tech Just Admitted AI Isn't Making Money — But They're Doubling Down Anyway

Big Tech just told Wall Street that AI revenue is exploding — and then admitted they're spending hundreds of billions more than expected with no timeline for profitability. Michael and Frank unpack the earnings paradox that's about to hit every small business using AI tools. Microsoft increased AI spending by twenty-five billion dollars this year. Meta's stock dropped after announcing more investment. Amazon's AWS hit fifteen billion in AI revenue — but they're still spending faster than they're earning. Here's why it matters: When Big Tech burns cash on AI infrastructure before it pays off, they pass the cost to you. Subscriptions are going up. Free tiers are disappearing. The AI tool landscape is consolidating fast — Cisco just bought Astrix for four hundred million, Nebius grabbed Eigen AI for six forty-three million, and BMW launched a three-hundred-million-dollar AI fund just to keep up. This episode breaks down what small business owners need to do now — before pricing doubles and independent tools get acquired or priced out of existence. Topics: Big Tech earnings · AI infrastructure spending · subscription price increases · AI tool consolidation · small business strategy · ROI measurement --- Frequently Asked Questions Why are Big Tech companies increasing AI spending if it's not profitable yet? They're locked in an arms race where slowing down means losing market share to competitors. The first company to blink risks getting left behind, so they're all betting hundreds of billions that revenue will catch up before shareholders lose patience. How will Big Tech's AI spending affect small business subscription costs? Microsoft told investors AI component costs are rising faster than expected — and they're not absorbing that. Expect ChatGPT, Gemini, Claude, and Copilot subscriptions to go up, usage caps to tighten, and free tiers to either disappear or become demo-only. Should small businesses lock in AI tools now or wait for prices to stabilize? Lock in workflows now. The pricing you see today is the best it will be for a while. Independent tools are getting acquired or priced out, and enterprise bundles are coming. Build processes around tools that work, diversify your AI stack across providers, and get annual subscriptions if pricing makes sense. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail Support the showCtrl AI Profit — Real AI. Real Business. No Hype.CtrlAiProfit.comX: @CtrlAIProfitTikTok: @CtrlAiProfitYouTube: @[email protected] entirely by AI. Yes, really....