"Talk of an AI bubble isn't slowing down Big Tech. Google, Meta, and Microsoft are spending more than ever to build the backbone of the AI boom.All three reported earnings on Wednesday, and all three told investors they'll spend even more on the data centers and chips at the heart of their massive AI bets - raising guidance and saying 2026 will bring even higher spending than 2025."
"Google said it now expects to spend between $91 billion and $93 billion this year on capital expenditures. That's an increase from the $85 billion figure it gave to analysts and investors in July, which was itself an increase over the guidance it gave in April. "We are investing to meet customer demand and capitalize on the growing opportunities across the company," CEO Sundar Pichai said in the company's earnings release. Google reported a record $102.3 billion in revenue for the quarter."
Google, Meta, and Microsoft significantly increased capital expenditures to expand AI infrastructure, including data centers, GPUs, and CPUs. Google raised its annual capex guidance to $91–$93 billion and reported $102.3 billion in quarterly revenue. Microsoft spent $34.9 billion in the quarter, cited demand exceeding supply, and signaled higher 2026 spending on GPUs and CPUs with revenue near $78 billion. Meta updated 2025 capex to $70–$72 billion, said 2026 will bring more infrastructure-driven AI spending, and reported $51.2 billion in revenue. All three expect spending to rise beyond 2025 levels amid investor debate over an AI boom.
Read at Business Insider
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