Tesla's profit fell 61% in the fourth quarter as it struggles to maintain its lead in the electric vehicle market. The company announced a $2 billion investment in Elon Musk's AI firm xAI, despite mixed reactions from shareholders. Additionally, Tesla will stop producing the Model S and Model X to repurpose their factory space for making Optimus robots.

Microsoft and Google reported strong earnings driven by AI and cloud growth. Both companies are ramping up capital expenditures significantly, reflecting high demand for their infrastructure, while user adoption of AI features continues to rise rapidly.