"Big Tech is on a spending spree, forecast to drop a staggering $650 billion on artificial intelligence ( AI) in 2026 alone-and that's just for Alphabet, Meta, Microsoft, and Amazon. The companies are ramping up their investment in an increasingly competitive, high-stakes arms race, pouring hundreds of billions into massive data centers and semiconductors, in hopes of establishing a long-term strategic advantage in their quest to dominate the future of technology."
"Wall Street's reaction may be an indication that investors are increasingly worried about the large spend, and relative payoffs, from the AI investments. The spending also coincides with mass layoffs across the tech industry. Those layoffs, which were originally attributed to AI being able to do the jobs of human workers, are now being seen by critics as an excuse for companies to reduce headcounts, so companies can divert spending from workers to building and powering AI data centers, among other things."
"At the time of this writing, shares of the cloud giant ( AMZN) were down over 6% in afternoon trading. "With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites . . . we anticipate strong long-term return on invested capital," Amazon CEO Andy Jassy said in the earnings release."
Alphabet, Meta, Microsoft, and Amazon plan to spend roughly $650 billion on artificial intelligence in 2026. The companies are directing hundreds of billions toward massive data centers and semiconductors to gain long-term strategic advantage. Wall Street reacted negatively to large AI expenditures during recent earnings reports, signaling investor concern about returns. The increased spending coincides with mass layoffs across the tech industry. Layoffs originally attributed to AI capabilities are criticized as pretexts to cut headcount and shift funds toward AI infrastructure. Amazon plans $200 billion in AI-related capital expenditures in 2026, contributing to downward pressure on its stock after missed operating income.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]