Fears over $828 billion AI capex spending spree help erase $1 trillion in market value
Source: Fortune ·
Five tech giants are set to spend as much as $828 billion this year on infrastructure as the AI race eats into cash flow and rattles Wall Street.
From the source
The richest companies in the history of the world are spending so much on the infrastructure backing AI that they’re burning through billions in cash and threatening a recent AI-fueled stock surge as Wall Street wavers. The latest financial disclosures by four of the biggest hyperscalers, Amazon, Alphabet, Microsoft, and Meta, as well as Elon Musk’s up-and-coming AI player, SpaceX, which includes xAI, revealed that the small group of tech heavyweights is set to invest as much as $828 billion on capital expenditures this year. That spending includes data centers, high-powered chips, and other infrastructure that fuels AI. Making up the $828 billion in capex spending is an expected spend for 2026 of $220 billion from Amazon, up to $205 billion from Alphabet, approximately $170 billion from Microsoft, up to $145 billion from Meta, and up to $88 billion from SpaceX, according to company earnings releases and calls. At this point, the massive AI infrastructure bill has surpassed the…