Amazon and Google are emerging as the biggest spenders in the global race to build artificial intelligence infrastructure, committing hundreds of billions of dollars to data centers, chips, and related technologies.

The scale of investment underscores Big Tech’s belief that control over computing power will determine future leadership in AI.

Amazon recently projected capital expenditures of about $200 billion through 2026, spanning investments in artificial intelligence, custom chips, robotics, and low-Earth orbit satellites.

While not all of the spending is AI-specific, the company’s cloud and automation ambitions are central to its long-term strategy.

Google is close behind, forecasting between $175 billion and $185 billion in capital expenditures for 2026, nearly double its spending from the previous year.

Meta also plans significant outlays, while Microsoft’s projected spending places it firmly among the top contenders, though still behind Amazon and Google.

Despite the strategic rationale, investors have reacted cautiously. Shares of several major tech firms fell following earnings announcements, reflecting concern over the sheer scale of spending and uncertainty around near-term returns.

Companies with the largest commitments generally faced the steepest market pullbacks.

Industry leaders argue that retreating now would be shortsighted if AI fulfills its promise of reshaping entire economies.

Still, the pressure is mounting for companies to justify their spending and reassure investors that today’s infrastructure binge will translate into sustainable profits.

Source: Techcrunch