Microsoft (MSFT, Financial), Amazon (AMZN, Financial), Alphabet (GOOG, Financial) (GOOGL, Financial), and Meta (META, Financial) are accelerating investments in artificial intelligence, with projected capital expenditures surpassing $300 billion this year.
Amazon led the charge with a planned $100 billion AI investment in 2025, CEO Andy Jassy said, calling it the biggest technological shift since the internet. Google-parent Alphabet increased AI-related spending to $75 billion, up from $53 billion in 2024, exceeding Wall Street expectations. The company's Q4 capital expenditure rose to $14.3 billion from $11 billion. CEO Sundar Pichai defended the investment, calling the AI opportunity "as big as it comes."
Microsoft has allocated $80 billion for AI infrastructure in its fiscal year, with $42 billion already spent in Q2. Meta projected AI spending between $60 billion and $65 billion for 2025, with long-term investments potentially reaching “hundreds of billions.”
The combined AI spending of these tech giants reached nearly $250 billion in 2024 and is expected to exceed $300 billion this year. Amazon's record $26 billion Q4 capex, largely for AI data centers, is anticipated to continue through fiscal 2025.
