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CHART: Big Tech is going wild on AI spending next year and beyond

Nov 05, 2024 - businessinsider.com
Tech giants Amazon, Google, Meta, and Microsoft are projected to spend $300 billion in capital expenditures (capex) in 2022, with the figure expected to rise even further by 2026, according to Morgan Stanley. The spending surge is primarily driven by opportunities in generative AI and large language models. Most of the capex will be allocated towards fixed assets like data centers and real estate.

Amazon's capex estimate saw the most significant increase, with a 22% rise to $96.4 billion in 2025, mainly due to increased purchases of GPUs and servers for its data centers. By 2026, Amazon's capex is expected to reach $105 billion, leading the other tech giants. The combined capex of these four companies is predicted to hit $336.5 billion in 2026.

Key takeaways:

  • Amazon, Google, Meta, and Microsoft are expected to invest about $300 billion in capital expenditures next year, with a focus on fixed assets like data centers and real estate.
  • The spending spree is driven by opportunities in generative AI and large language models, according to Morgan Stanley.
  • Amazon's capex estimate saw the largest increase, with the bank's analysts raising their capex estimate for Amazon by 22%, to $96.4 billion in 2025.
  • In 2026, these four companies will invest $336.5 billion in capex, with Amazon leading the other tech giants, according to Morgan Stanley estimates.
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