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Big Tech is spending trillions on AI. Investors now want proof it will pay off.
By Aimee Picchi at CBS Texas (KTVT) DFW
· June 26, 2026
· 5 min read
This week's selloff in technology stocks underscores a gnawing anxiety among investors: whether Big Tech's massive spending on artificial intelligence will ultimately pay off.The Nasdaq Composite Index has slipped nearly 5% this week as Wall Street frets over whether the trillions of dollars goin...
Key takeaway The Nasdaq Composite Index has slipped nearly 5% this week as Wall Street frets over whether the trillions of dollars going into artificial intelligence will deliver the revenue and profit growth needed to justify that exorbitant cost.
Why this matters in Southlake News
As the tech industry's AI spending spree continues, Southlake residents may wonder how this trend will affect their local economy. With major tech companies like Google and Microsoft having a presence in the Dallas-Fort Worth area, the potential impact on jobs and businesses in Southlake is a concern. The fact that many companies are laying off workers and investing in AI instead raises questions about the future of employment in the region. Furthermore, the uncertainty surrounding the payoff of AI investments may lead to a cautious approach from local businesses, potentially slowing down economic growth in Southlake. As the city's business community navigates this shift, it will be important to monitor how the tech industry's AI investments affect the local job market and economy, and to consider ways to support workers who may be displaced by automation.
About this story
Original reporting by CBS Texas (KTVT) DFW . Southlake News surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit CBS Texas (KTVT) DFW . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: June 26, 2026 ·
Source: CBS Texas (KTVT) DFW ·
Reading time: 5 min
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Frequently asked about this story
What is this story about? This week's selloff in technology stocks underscores a gnawing anxiety among investors: whether Big Tech's massive spending on artificial intelligence will ultimately pay off.The Nasdaq Composite Index has slipped nearly 5% this week as Wall Street frets over whether the trillions of dollars goin...
When was this published? This article was first published on June 26, 2026 by CBS Texas (KTVT) DFW and curated for Southlake News readers.
Who reported this story? This story was reported by Aimee Picchi at CBS Texas (KTVT) DFW. To learn more about how Southlake News selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from Southlake News, or browse our daily briefing and topic hubs .
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