Category: 3. Business

Google, Meta and Microsoft spent almost $80bn over the last quarter on artificial intelligence infrastructure, but investors had markedly different reactions to their plans to increase this historic spending spree.

Alphabet shares rose almost 7 per cent in after-hours trading on Wednesday as the Google parent boosted its capital expenditure plans for 2025 by $8bn to $93bn, and delivered a record $100bn in quarterly revenue.

By contrast, Meta plunged almost 9 per cent — potentially wiping $160bn from its valuation when markets open on Thursday — as Mark Zuckerberg’s company signalled much higher AI spending, which could top $100bn next year.

The varied reaction to their earnings and spending plans “underscores how sensitive investors are to how quickly the AI build-out can deliver revenue”, said Dec Mullarkey, managing director of $300bn asset manager SLC Management. 

“Investors are worried that the rush to grab market leadership may cause an overshoot,” he added. “No one needs reminding that history is full of episodes of technology exuberance that eventually left the early investors battered.”

Microsoft — which became the third company to surpass a $4tn valuation this week after finalising its restructuring pact with OpenAI — also suffered a share price drop.

Its stock fell 4 per cent, despite beating profit estimates and posting a 39 per cent jump in revenue at its key Azure cloud computing unit.

It reported capital expenditure was $35bn in the quarter, a 74 per cent increase year-on-year and $5bn more than expected. Executives forecast spending of almost $140bn next year.

Chief executive Satya Nadella told analysts that the software group was building “planet scale” cloud infrastructure and plans to double Microsoft’s data centre footprint over the next two years.

Google and Microsoft, which both sell cloud computing to other businesses, had an easier time showing investors that elevated spending on chips, data centres and electricity will lead to income.

After a slow start in the AI race, chief executive Sundar Pichai said that the Gemini App, its main consumer AI product, now has 650mn monthly users, up from 450mn in July, and closing in on ChatGPT’s 800mn.

Pichai added that growth in its cloud unit “was driven by enterprise AI products, which are generating billions in quarterly revenues” and that it had an order backlog for computing services worth $155bn.

The 15 per cent boost to core search advertising revenue also helped address concerns that ChatGPT is taking market share and AI is cannibalising traditional search.

“We believe this performance demonstrates successful AI integration across ad-based platforms,” said Angelo Zino, an analyst at CFRA Research. “Google’s ability to maintain margins while scaling AI infrastructure demonstrates effective use of spending.”

Zuckerberg, meanwhile, had to defended huge spending on infrastructure for Meta’s own use, as the tech group vies to be the first to build artificial superintelligence. 

He said it was “the right strategy to aggressively frontload building capacity”. He added that any excess data centre space could be repurposed to serve Meta’s core advertising functions, which he said were “compute starved”.

A 26 per cent increase in quarterly revenue to $51.2bn failed to mollify the market, as investors fretted that Meta’s huge outlay on chips and staff has yet to produce a large language model as capable as rivals.

The social media company said capex could hit $72bn by year-end and that spending growth would be “notably larger” in 2026, implying a number far in excess of an earlier forecast for $105bn.

Zuckerberg has also been luring engineers to his elite “TBD” lab with pay packages in the hundreds of millions of dollars, which Meta warned would be a big contributor to expenses as full-year costs appear in its results.

Investors were disappointed by a rise in research and development costs, which accounted for 30 per cent of revenue, the highest level in more than two years. Its operating margin narrowed 3 percentage points to 40 per cent.

“Expenses are growing faster than revenue,” said Gene Munster at Deepwater Asset Management. “Next year it’s going to be more like 18 per cent revenue growth and 35 per cent expense growth.”

Meta disclosed a $15bn one-off charge related to changes in President Donald Trump’s tax bill that depressed net income 83 per cent to $2.7bn.

Meta has indicated that its AI efforts are unlikely to generate meaningful revenue this year or in 2026. Zuckerberg on Wednesday promised that his new superintelligence team were focused on “novel” work that could be rapidly rolled out to 3.5bn users on Facebook, WhatsApp and Instagram, and could make money via advertising, commerce or subscriptions. 

Investors worry Zuckerberg’s quest to dominate advanced AI is disconnected for Meta’s underlying business despite his insisting that it can improve advertising ranking and recommendations.

Brian Wieser, an analyst at advisory firm Madison and Wall, said Google and Microsoft “are doing much more from a tech perspective. Meta’s actual business is selling ads.”

“There [are] so many more arrows in the quiver for Google and Microsoft,” he added.

Tokyo, October 30, 2025 – Mitsubishi Heavy Industries Thermal Systems, Ltd. (MHI Thermal Systems), a part of Mitsubishi Heavy Industries (MHI) Group, has added two new models to its “Hydrolution EZY” series of air-to-water (ATW) heat pumps for the European market that utilize R290 (propane). This is a natural refrigerant with low environmental impact and high energy efficiency. The new models have capacities of 6kW and 7.1kW and are scheduled for release this winter.

ATW heat pumps extract heat from the air to supply cold and hot water for domestic water supply, heating, and cooling, replacing traditional fossil-fueled boilers.
The models added to the lineup are monobloc types in which the water heat exchanger is housed in an outdoor unit, with only water piping required. Compared to split-type ATWs, which require the refrigerant pipe connections between an outdoor unit and an indoor unit, installation is easier.

The R290 refrigerant used in these models has a very low environmental impact(Note1) while retaining high energy efficiency. This is particularly important for the European market, as environmental regulations are tightened.

Modifications that allow the use of R290 also enable the units to maintain a flow temperature of 75℃ in a wide range of environments, from an outside temperature of -25℃, to 43℃, meaning the unit can be relied upon for heating and domestic hot water applications even in the coldest regions. These latest models, in addition to high-temperature water-heating capabilities, are silent and easy to install, with only water piping and an electricity supply to the outdoor unit required. When operating at maximum capacity, the 6kW model has a sound pressure level, a measure of noise intensity, of just 34dB(A)(Note2). The unit also has a quiet mode for reduced operating noise, providing flexibility to comply with noise regulations in densely populated residential areas.

In addition, as a safety measure, the units are equipped with a refrigerant leak detection sensor. In the event of a leak, the unit will stop running, and a fan engaged to dissipate any escaped refrigerant.

In order to better integrate into a range of installation environments across Europe, including residential areas, the models have been visually redesigned with an understated, modern appearance. The front of the now all-black unit is fitted with a fan guard accented with a silver vertical line and is designed to make it difficult to see the fan from an oblique direction.

By promoting the transition from boiler combustion using fossil fuels that emit high concentrations of CO₂, to ATW using electricity, Hydrolution EZY can make a significant contribution to carbon neutrality in European countries, and the achievement of MHI Group’s MISSION NET ZERO.

In October 2021, MHI Group announced its MISSION NET ZERO declaration to achieve carbon neutrality across the entire corporate group by 2040 by reducing CO₂ emissions from its own plants and other production-related facilities, as well as through reductions in the CO₂ emissions at customer facilities that use MHI Group products.

Going forward, MHI Thermal Systems will continue to develop environmentally friendly technologies and products that take advantage of the breadth of the refrigeration and heating sector, and contribute to carbon neutrality in Europe and countries around the world.

• 1 R290 has a global warming potential (GWP) of only 0.02. Global Warming Potential (GWP) is a coefficient expressing the greenhouse effect of a gas relative to carbon dioxide (CO₂), which has a fixed GWP of 1.0. The lower the value, the lower the greenhouse effect and the better for the environment. The GWP value of “0.02” is adopted based on the IPCC Sixth Assessment Report.
• 2 Value measured at three meters in front of the unit.

(Bloomberg) — Gold staged a partial recovery following a run of losses as traders weighed conflicting views from Federal Reserve policymakers about the chance of more rate cuts.

Bullion rose as much as 0.9% to trade near $3,967 an ounce after falling almost 5% over the previous four sessions. Fed Chair Jerome Powell downplayed the likelihood of a December reduction after a widely expected quarter-point cut on Wednesday. Still, despite Powell’s unusually direct remarks, the vote marked the third straight meeting in which officials lodged dissents against the majority decision — a run not seen since 2019.

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The divisions at the Fed add to challenges for investors seeking signals on the path ahead for monetary policy, with the US government shutdown that began in early October creating a vacuum of official data. Higher interest-rates tend to pose a headwind for non-yielding gold.

The precious metal has retreated sharply following a scorching rally that drove prices to a record above $4,380 an ounce last week. Technical indicators had shown the ascent was overheated, while growing signs of progress in US-China trade relations have eroded bullion’s haven appeal.

Presidents Donald Trump and Xi Jinping are set to finalize a détente when they meet Thursday in South Korea, putting the world’s biggest trade fight on hold — at least for now. Initial signals indicate the leaders are readying a pact that could roll back some tariffs, fees and export restrictions either threatened or enforced in recent months.

Still, even after its recent pullback, gold has gained about 50% this year, supported by central-bank buying and interest in the so-called debasement trade, in which investors avoid sovereign debt and currencies to protect themselves from runaway budget deficits.

“The market has experienced a natural correction, but we continue to view this bull market as incomparable with prior bull markets in terms of the breadth and depth of potential monetary demand,” Sebastian Mullins, head of multi-asset and fixed income at Schroders, said in a note.

The surge had drawn institutional and retail buyers to gold-backed exchange-traded funds, although outflows this week have removed some of this support. Total gold ETF holdings fell for a fifth consecutive day on Tuesday — the longest streak of declines since May, according to data compiled by Bloomberg.

Lachlan Murdoch’s top adviser – News Corp’s Australian broadcasting chief Siobhan McKenna – has resigned from the company following the sale of the Foxtel Group to global sports streaming service DAZN.

As chief executive of broadcasting for News Corp, McKenna’s role had significantly diminished after the pay TV and streaming business, which includes Kayo, Binge and Hubbl, was sold to the European broadcaster in April.

A former partner at McKinsey & Company, McKenna was Murdoch’s key adviser in the epic family trust case, which saw him take control of his father’s global media empire and secure the future of the Australian stable of newspapers, magazines and news channels.

The 53-year-old businessperson was heavily involved in the negotiations with Rupert Murdoch’s three “objecting children” in the Nevada court case, which was settled in the US last month. The three oldest siblings received an estimated US$1.1bn each for their shares in the business.

McKenna will leave the company at the end of the year, staff were told by News Corp’s global chief executive, Robert Thomson, in an email on Thursday morning.

“Her decision, and it is her decision, is essentially epochal as Siobhan has been a transformational force during her years with News Corp,” Thomson said.

“The word ‘visionary’ is often abused, but not in Siobhan’s case, as her ability to perceive the future from the haze-shrouded shapes on the horizon is nonpareil. She is irreplaceable.”

McKenna and Lachlan set up the private investment company Illyria 20 years ago, having both great success with Nova Entertainment and significant losses when he took over the Ten network in 2012 before it went into voluntary administration in 2017.

The Albanese government appointed McKenna as chair of Australia Post in 2022, citing her commercial, strategic, digital and technology experience.

Thomson said McKenna navigated Sky News Australia and Foxtel through a “treacherous tech landscape” and made them into “global success stories”.

“The worth of Foxtel was instinctively appreciated by the global leader in sports streaming, DAZN, which recently acquired the company, and with whom we have an ongoing partnership,” he said.

“Sky was transformed from a traditional broadcaster to a digital powerhouse whose efficacious impact stretches far beyond the borders of Australia. The success of both companies marks a profound turning point for our company and a professional inflexion point for Siobhan.”

Lachlan is the chair of News Corp, the parent company of more than two dozen publications including the Wall Street Journal, The Times and the New York Post, after he succeeded his father in 2023 and executive chair and CEO of Fox Corporation.

Tokyo, October 30, 2025 – Mitsubishi Heavy Industries Machinery Systems (MHI-MS), a part of Mitsubishi Heavy Industries (MHI) Group, will conduct demonstration testing of finished vehicle logistics (FVL) using vehicle transport robots to autonomously move automobiles. Following a proposal adopted for “Testbed Support Subsidy Program”(Note1) conducted by Okinawa Prefecture, demonstration testing is scheduled to begin on December 1 this year at the prefecture’s temporary vehicle storage yard (motor pool) at Nakagusuku Port (Uruma, Okinawa Prefecture).

Vehicle transport robots are used to autonomously move finished vehicles at automobile manufacturing plants, motor pools, and for automated valet parking at shopping malls, theme parks, and airports.(Note2) The system enables automated transport even if the vehicle itself is not equipped with autonomous driving capabilities or communication functions, and can be widely utilized in motor pools for both new and used cars without the need for vehicle modification or extensive installation of equipment on the infrastructure side, and without major changes to current operations.

MHI-MS has been jointly developing the first advanced automated transport robot business in Japan with Stanley Robotics, a French venture company, since 2021. As of October 2025, seven core patents have been registered in Japan for automated transport robots, which will drive market expansion. In consideration of the unique conditions in Japan, domestic development of a customizable system was completed in March this year.

Okinawa, the site of the demonstration testing for finished vehicle transport, is a region with a high rate of private car ownership, with the number of private cars owned per capita of the population over the age of 20 exceeding the national average. Used cars especially are preferred by many prefectural residents because they are less expensive than new cars, and play an important role in the infrastructure supporting everyday life. In addition, because of the many tourist arrivals in Okinawa from Japan and abroad, the number of rental car registrations is one of the highest in Japan. Registered rental cars are replaced every few years and sold on the market as used cars. In this way, the used car market supports Okinawa’s industry and the everyday lives of people.

The Nakagusuku Port Motor Pool is mainly used for temporary storage of used cars prior to shipping, and transport services such as the loading and unloading of used cars are conducted at the site on a regular basis. In addition, the outdoor work environment has become harsher due to global warming, so reducing the physical burden on workers and ensuring a sustainable working style is an urgent matter. Strategies to address labor shortages due to the declining birth rate and aging population have also become a concern. In addition, the application of DX (digital transformation) technologies for vehicle management, such as visualization of the storage location of used cars, was also a factor for future consideration.

MHI-MS decided to participate in this program in Okinawa Prefecture to demonstrate the effectiveness of vehicle transport robots as a solution to such challenges. The demonstration testing will evaluate the potential for improving the working environment, and responding to labor shortages, as well as “human-centered robot utilization” such as robot-based yard management systems and DX to handle vehicle location information. The tests will also evaluate the potential contribution to decarbonization efforts by confirming supplemental benefits such as curbing CO₂ emissions through reduced driving of gasoline-powered vehicles.

Going forward, as a company committed to creating new value for society and solving future societal issues through mechatronics, MHI-MS will establish a new future for finished vehicle transport that is friendly to both people and the planet.

• 1 “Testbed Support Subsidy Program (Okinawa Prefecture Subsidy Program)” provides support for proof-of-concept experiments within Okinawa Prefecture by companies with innovative digital technologies and services, with the aim of furthering innovation and solutions to societal issues.
  See the following website for more information about the program.
  https://testbedislandokinawa.com(Japanese)
• 2 When the driver stops at a designated berth close to the facility, the vehicle transport robot moves the vehicle to a vacant space, taking over parking on behalf of the driver. The process is reversed when retrieving the vehicle, with the robot transporting the vehicle back to the berth at the time specified by the driver in advance using the smartphone app. For drivers, there is no need to find a parking space or park, and no concerns about brushing against the adjacent car when opening the door.

　

Related Press Releases

“MHI Group to Deliver Japan’s First Systems for Automated Valet Parking and Automated Transportation of Finished Vehicles” (October 27, 2021)
https://www.mhi.com/news/21102702.html

“MHI Group to Begin Demonstration Testing of Automated Valet Parking System Using AGV Robots at Outlet Mall in Chiba” (June 13, 2022)
https://www.mhi.com/news/220613.html

“MHI-MS Completes Domestic Registration of Core Patents for Vehicle Transport Robots” (September 11, 2024)
https://www.mhi.com/jp/news/24091101.html (Japanese)

“MHI-MS Completes Domestic Development of Vehicle Transport Robot” (March 4, 2025)
https://www.mhi.com/news/250304.html