Big Tech companies are poised to spend over $400 billion on artificial intelligence (AI) infrastructure in the next 12 months, driven by a surge in investment aimed at dominating the AI space. Major players like Amazon, Meta, and Microsoft are significantly increasing their capital expenditures, with Amazon expected to invest over $120 billion and Meta ramping up from $20 billion to $90 billion in just three years.
This marks a major shift in tech spending, with the collective capital expenditures for the “Hyperscale 5″—the largest U.S. cloud operators—jumping from under $150 billion in 2022 to over $400 billion imminently. By 2030, AI capital expenditures are projected to reach nearly $1 trillion, reflecting a self-reinforcing cycle of investment as new AI models require more resources.
The influx of capital is benefiting a broad array of sectors, from semiconductor suppliers like Taiwan Semiconductor and Nvidia to energy and infrastructure companies supporting AI operations. Such investments underscore the necessity for Big Tech firms to secure leading positions in AI, as the competition intensifies for computing power.
