"Sometimes, it can seem like the AI industry is racing to see who can spend the most money on data centers. Whoever builds the most data centers will have the most compute, the thinking goes, and thus be able to build the best AI products, which will guarantee victory in the years to come. There are limits to this way of thinking - traditionally, businesses eventually succeed by making more money and spending less - but it's proven remarkably persuasive for large tech companies."
"The company announced in its earnings on Thursday that it projects $200 billion in capital expenditures throughout 2026, across "AI, chips, robotics, and low earth orbit satellites." That's up from the $131.8 billion in capex in 2025. It's tempting to attribute the whole capex budget to AI. But unlike most of its competitors, Amazon has a significant physical plant, some of which is being converted for use by expensive robots, so the non-AI expenses aren't so easy to wave away."
Major technology companies are sharply increasing capital expenditures for 2026 to build AI-related compute, data centers, chips, robotics, and satellites. Amazon forecasts $200 billion in capex for 2026, up from $131.8 billion in 2025, while Google projects $175–$185 billion, up from $91.4 billion. Meta plans $115–$135 billion and Oracle $50 billion. Microsoft’s recent quarterly capex annualized suggests roughly $150 billion. Amazon’s capex includes substantial physical plant and robotic conversions, so not all spending maps directly to AI. Investors are reacting to rising capex, especially at companies with notable increases.
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