Meta tanks nearly 9%, Microsoft jumps 8% as the AI trade splits Big Tech

Meta shares plunged on Wednesday as investors balked at its promise to keep spending on artificial intelligence (AI) projects while profits dwindle.

Meta shares fell 7.5 per cent on Wednesday on weak financial results and rising expenses, as chief executive Mark Zuckerberg defended his costly quest to make the company a leading contender in AI.

In a Wall Street Journal op-ed published on Tuesday, Zuckerberg expressed his optimism for a world where everyone has access to a super-intelligent machine.

Microsoft has posted strong quarterly earnings, surpassing expectations with significant growth in its cloud computing platform and a boost in paid AI users