Microsoft, Meta, Alphabet, and Amazon are expected to boost capital expenditures to over $470 billion in 2026, up from approximately $350 billion in 2025. The AI infrastructure arms race is accelerating.
Focus on AI training clusters, inference infrastructure, and data centers
What They’re Building
Microsoft: Azure AI infrastructure, OpenAI partnership commitments
Meta: Prometheus AI Supercluster, 6.6GW nuclear contracts
Google: TPU infrastructure, Gemini training clusters
Amazon:AWS AI infrastructure, custom chips (Trainium, Inferentia)
The Investor Question
With Big Tech earnings season underway, investors are scrutinizing whether this massive spending will deliver returns. The question: are we building the infrastructure for a transformative technology, or overbuilding based on hype?
The Comparison
OpenAI alone has committed $1.4 trillion through 2035. The hyperscalers’ $470B annual spend, while enormous, is actually more conservative relative to revenue—these companies can afford experimentation that startups cannot.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
