Krux
February 16, 2026
Big Tech to Drop $650B on AI in 2026
Published: February 16, 2026 at 4:47 AM
Updated: February 16, 2026 at 4:47 AM
100-word summary
Alphabet, Amazon, Meta, and Microsoft are forecasting a combined $650 billion in capital expenditures for 2026—almost double their $381 billion spent in 2025. Amazon leads the pack at $200 billion, followed by Alphabet ($175-185B), Meta ($115-135B), and Microsoft ($97-105B). The cash is pouring into AI data centers, GPUs, servers, and power systems. Investors weren't thrilled—stocks dipped after the announcements. This marks the biggest single-year capex splash in a decade, but concerns are brewing about whether returns can justify this "mind-boggling tide" of spending.
What happened
Alphabet, Amazon, Meta, and Microsoft are forecasting a combined $650 billion in capital expenditures for 2026—almost double their $381 billion spent in 2025. Amazon leads the pack at $200 billion, followed by Alphabet ($175-185B), Meta ($115-135B), and Microsoft ($97-105B). The cash is pouring into AI data centers, GPUs, servers, and power systems. Investors weren't thrilled—stocks dipped after the announcements.
Why it matters
This marks the biggest single-year capex splash in a decade, but concerns are brewing about whether returns can justify this "mind-boggling tide" of spending.