Ben Thompson, the respected tech analyst behind Stratechery, has released a detailed assessment of how artificial intelligence is reshaping the technology industry's competitive dynamics two years into what he describes as a transformative era for Big Tech.
In his analysis published on July 9, 2025, Thompson examines how his 2023 predictions about AI's impact on the 'Big Five' tech companies have played out. The report, titled 'Checking In on AI and the Big Five,' offers a critical evaluation of how Apple, Amazon, Google, Meta, and Microsoft have navigated the AI revolution.
Thompson's analysis reveals significant shifts in the industry's power structure. Meta appears to be making aggressive moves in AI talent acquisition, with Thompson noting that CEO Mark Zuckerberg is 'spending his days firing off emails and WhatsApp messages to the sharpest minds in artificial intelligence in a frenzied effort to play catch-up.' This follows disappointment with Meta's Llama 4 release, prompting the company to increase its projected capital expenditures for 2025 to between $64-72 billion to support its AI initiatives.
For Google, Thompson observes that AI presents both opportunities and existential challenges. While the company has tremendous AI capabilities in infrastructure and research, generative AI poses potential disruption to its core search business model. Meanwhile, Microsoft has positioned itself advantageously through its OpenAI partnership, with plans to integrate GPT technology across its productivity applications.
Apple's approach to AI receives particular scrutiny. Thompson characterizes Apple's recent WWDC as 'a retreat' from ambitious AI promises made last year, with the company refocusing on its traditional strengths in UI design rather than attempting to catch up in generative AI. He suggests Apple needs to either commit to partnerships or make significant acquisitions to remain competitive in the AI landscape.
The analysis also explores how AI is affecting talent dynamics in the industry, with Thompson comparing the current competition for top AI researchers to NBA salary structures. He notes that companies are now 'paying closer to fair market value for talent' with packages worth tens of millions of dollars annually for top AI experts.
Thompson's comprehensive review serves as an essential reference point for understanding how AI continues to reshape the technology landscape, with implications for business models, competitive positioning, and the future of digital experiences.