"AIpocolypse Four tech megacorps intend to collectively fork out roughly $635 billion this year on capex, much of it for datacenters and AI infrastructure - more than the entire output of Israel's economy and well beyond all global cloud infrastructure services revenue generated last year. The tech titans are all trying to outdo each other by spending eye-watering amounts on capex, the majority of which will go on AI and cloud expansion,"
"Amazon says it expects to spend $200 billion in 2026, with most of that headed to AWS. Google is aiming to pump $180 billion into building and equipping datacenters, while Meta expects capex in the range of $115 billion to $135 billion, and Microsoft is running at a pace that implies around $120 billion a year in spending."
"These extraordinary sums show how far the industry leaders are willing to go to gain some kind of advantage in the AI race, even though returns on all the spending have so far failed to live up to expectations, and investors are reportedly getting restless. Microsoft's share price fell about 10 percent after its recent results were announced, for example, due to investors expecting a bigger payoff."
Amazon, Google, Meta and Microsoft intend to spend roughly $635 billion on capital expenditures this year, with most funds directed to datacenters and AI infrastructure. Amazon expects to spend $200 billion in 2026, Google about $180 billion, Microsoft roughly $120 billion annually, and Meta between $115 billion and $135 billion. The combined capex exceeds Israel's 2025 GDP of $610 billion and approaches Sweden's $662 billion. The spending surge is driven by competition for AI advantage despite limited returns so far and investor unease. Datacenter demand is causing memory shortages and diverting production from consumer devices, while capex outstrips 2025 cloud infrastructure services revenue of $419 billion.
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