Tech Giants Pour $300 Billion into AI as Investment Race Heats Up

Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta (NASDAQ:META) are accelerating investments in artificial intelligence, with projected capital expenditures surpassing $300 billion this year.

Amazon led the charge with a planned $100 billion AI investment in 2025, CEO Andy Jassy said, calling it the biggest technological shift since the internet. Google-parent Alphabet increased AI-related spending to $75 billion, up from $53 billion in 2024, exceeding Wall Street expectations. The company’s Q4 capital expenditure rose to $14.3 billion from $11 billion. CEO Sundar Pichai defended the investment, calling the AI opportunity “as big as it comes.”

Microsoft has allocated $80 billion for AI infrastructure in its fiscal year, with $42 billion already spent in Q2. Meta projected AI spending between $60 billion and $65 billion for 2025, with long-term investments potentially reaching hundreds of billions.

The combined AI spending of these tech giants reached nearly $250 billion in 2024 and is expected to exceed $300 billion this year. Amazon’s record $26 billion Q4 capex, largely for AI data centers, is anticipated to continue through fiscal 2025.

This article first appeared on GuruFocus.