Big Tech AI Capex Hits $130B Q1, Forecast $725B 2026
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- Meta and its peers Alphabet, Microsoft, and Amazon combined capex reached a record $130 billion in Q1 and is projected to hit $725 billion in 2026, up 77% from $410 billion in 2025.
- Alphabet’s cloud business outpaced rivals, with Google Cloud pulling ahead as Big Tech’s AI bet swelled to $700 billion.
- Meta reported revenue growth driven by ad performance and AI initiatives.
- Meta fell behind Alphabet and Amazon in the AI shift, as indicated by earnings comparisons.
Why it matters: Alphabet's surge in AI spend bolsters its cloud revenue and wins investor confidence, while Meta's aggressive capex draws scrutiny and lags behind peers, potentially limiting its earnings upside; the broader tech industry faces job cuts even as AI investment accelerates.
