Cloud providers are spending over half their annual revenue on infrastructure as AI investment reshapes capital spending patterns post-ChatGPT

Large cloud vendors including Amazon, Google, Microsoft, and Oracle have dramatically increased Plants, Property and Equipment (PP&E) spending — actual capital investment in datacenters and facilities — following ChatGPT's release, reversing a pre-2022 plateau in year-on-year growth.

All major cloud players except Apple are now spending at least half of their annual revenue on new infrastructure, with most spending well north of that figure. A decade ago, this level of investment would have been unthinkable.

The analysis covers PP&E spend over the past decade for major vendors, excluding operating lease assets. Oracle's 2023 PP&E spike reflects its 2022 $28B acquisition of Cerner, which brought datacenters and facilities onto Oracle's balance sheet in the following year.