Four of America’s biggest tech companies—Alphabet, Amazon, Meta, and Microsoft—plan to spend around $650 billion by 2026 to expand artificial intelligence infrastructure.
They are building new data centers and buying AI chips, servers, cables, and backup generators. Their goal is simple: to lead the fast-growing AI market.
Spending far above others
The level of investment has no recent parallel. Bloomberg data shows each company’s yearly budget now breaks corporate spending records of the past decade.
Amazon leads with $200 billion, followed by Alphabet at $185 billion, Meta at $135 billion, and Microsoft at close to $105 billion. Together, their plans mark a 60% jump from last year.
By comparison, 21 major US industrial firms combined expect to spend just $180 billion.
Risks and concerns
The construction boom for new data centers is straining electricity and water supplies and raising local costs. Companies also face shortages of skilled workers and AI chips.
While executives expect AI tools to drive strong future profits, investors worry the massive bills and tight supply chains could pressure returns if growth slows.
The massive spending plans are also worrying investors. Amazon, Microsoft (which saw its second-largest decline in market cap after shedding $357 billion in one day), and Alphabet saw their shares decline after they announced their AI plans. However, Meta’s disclosure of AI capital expenditure appealed to stakeholders, and its shares rose 10% on the announcement.