How much are the four companies spending this year?

They plan to spend at least $720 billion on capital expenditures this year alone, most of it going toward AI infrastructure.

What did investors do in response?

The spending plans spooked Wall Street and triggered a sharp selloff in tech stocks last week, which began to taper off as investors shifted focus to Tuesday's midterm elections.

What are the future spending commitments?

There are at least $1 trillion in spending commitments arranged for the coming years, on top of this year's CapEx.

AI Stocks & MarketsAI Business & IndustryThe Verge AI3m agoNov 5, 2026, 22:01 JST

Big Tech to spend at least $720 billion on AI buildout this year

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3 Key Points

What happened
Amazon, Microsoft, Alphabet and Meta told investors they plan to spend at least $720 billion on CapEx this year, mostly on AI infrastructure, on top of at least $1 trillion in commitments for coming years.
Why it matters
The spending plans spooked Wall Street and triggered a sharp selloff in tech stocks last week, as investors grow antsy about when AI will deliver returns.

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Context & Analysis

The scale of the spending is unprecedented for these companies. Alphabet plans between $195 billion and $205 billion in capital expenditures this year, Amazon intends $220 billion, and Meta expects between $135 billion and $145 billion. All three have signaled further increases ahead: Alphabet plans to increase spending "significantly" in 2027, Amazon intends to spend "meaningfully more" than this year's $220 billion, and major financial institutions expect Meta to increase its spending from this year.

The tension for investors is that despite enormous spending, the companies have not really made money from AI yet. Top-line revenue is growing—Amazon reported its fastest growth in five years for the quarter, Meta's ad revenue is surging, and Google Cloud's revenue more than doubled in a year—but it may not be enough to justify the massive outlays. Wall Street's patience is wearing thin after more than three years.

FAQ

How much are the four companies spending this year?: They plan to spend at least $720 billion on capital expenditures this year alone, most of it going toward AI infrastructure.
What did investors do in response?: The spending plans spooked Wall Street and triggered a sharp selloff in tech stocks last week, which began to taper off as investors shifted focus to Tuesday's midterm elections.
What are the future spending commitments?: There are at least $1 trillion in spending commitments arranged for the coming years, on top of this year's CapEx.

The Verge AIRead Original Article

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