Big Tech's $650bn AI spending spree triggers investor revolt
The arithmetic is brutal: Alphabet, Amazon, Meta, and Microsoft will collectively burn through $650 billion in 2026, mostly on AI infrastructure that generates no immediate revenue. Meta hiked its capex outlook to $145 billion yesterday and promptly shed $950 billion in combined market value across the four companies. Microsoft reported a 66% quarterly jump in spending, while Amazon plans $200 billion on data centers. The scale dwarfs Belgium's GDP and makes 21 other major US firms look quaint with their combined $180 billion. Investors are finally asking the obvious question: where are the returns?
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