As the US earnings season unfolds, the world’s top tech giants — Microsoft, Amazon, Alphabet, and Meta — have made it clear to Wall Street that Artificial Intelligence (AI) is their next major growth engine. Collectively, the four companies plan to spend an unprecedented $380 billion in 2025 to strengthen their AI infrastructure and capabilities.
The surge in spending reflects the industry’s race to capture what leaders describe as “limitless demand” for AI-driven services. Each company has lifted its capital expenditure (capex) guidance, signaling aggressive investments in data centers, chips, and cloud platforms.
Amazon Bets Big on AI
Amazon’s Chief Financial Officer, Brian Olsavsky, said total capital expenditure for the year will touch $125 billion, with an even higher outlay expected in 2026.
“We’ll continue to make significant investments, especially in AI,” he said, emphasizing that the company sees AI as “a massive long-term opportunity.”
CEO Andy Jassy echoed the sentiment, noting strong demand for both AI and cloud infrastructure services.
Alphabet Raises Capex Forecast
Google’s parent company Alphabet also reported strong quarterly earnings and increased its annual capex target to $91–93 billion, up from $85 billion earlier this year.
CEO Sundar Pichai and CFO Anat Ashkenazi said AI infrastructure will remain a key focus area, with an even larger bill anticipated in 2026.
Meta Accelerates AI Spending
Meta Platforms, led by Mark Zuckerberg, narrowed its annual capex range to $70–72 billion, up from earlier guidance.
Zuckerberg said the company plans to accelerate AI infrastructure spending next year, preparing for a future where “superintelligence” could emerge sooner than expected.
“We’re aggressively front-loading capacity building to stay ready for the most optimistic AI outcomes,” he said.
Microsoft Expands Cloud and AI Capacity
Microsoft reported record capital expenditure of nearly $35 billion in its latest quarter and expects this figure to rise sharply in fiscal 2026.
Last year, Microsoft’s capex surged 45% to $64.55 billion, and CFO Amy Hood projected spending could reach $94 billion next year as the company ramps up its AI and cloud operations.
The Bigger Picture: An AI Spending Boom or Bubble?
According to Morgan Stanley, big tech firms may collectively invest $3 trillion in AI infrastructure, including data centers, by the end of 2028.
However, analysts warn that these sky-high investments, coupled with rising tech valuations and limited real-world productivity gains from AI, could signal a looming AI bubble.
