Tech giants plan nearly $700 billion in AI infrastructure spending in 2026 as demand for AI capacity soars.

Tech giants Amazon, Alphabet, Microsoft, and Meta Platforms plan on spending almost $700 billion on AI infrastructure build-out in 2026. Amazon alone forecasts capital spending of $200 billion this year to serve Amazon Web Services (AWS) customers.

AI infrastructure includes chips, servers, networking equipment, and data centers needed for both training large language models (AI systems that understand and generate text) and running them on real-world problems. Companies must continue investing as trained models are applied more frequently and in more sophisticated ways.

Recent earnings reports show that Alphabet, Amazon, and Meta pushed S&P 500 earnings growth to more than 27%, the highest level since 2021. Morningstar suggests AI stocks are trading at their biggest discount in seven years.