Overview
- Microsoft logged a record near-$35 billion quarter of capital spending and said AI capacity will remain constrained through June 2026 as outlays accelerate next fiscal year.
- Amazon projected about $125 billion in 2025 capital expenditures with more planned for 2026, while AWS revenue rose 20% to $33 billion and investor reaction turned positive.
- Alphabet raised its 2025 capex outlook to $91–$93 billion, saying the vast majority funds AI infrastructure, as Google Cloud revenue grew 34%.
- Meta narrowed its 2025 capex range to $70–$72 billion and signaled a notably larger 2026, a stance that weighed on shares as investors questioned the path to returns.
- Executives and policymakers defended the spending even as bubble worries persist, with firms noting short-lived GPUs drive replacement needs and some projects tapping debt markets.