Goldman Sachs says Big Tech will spend $5.3T on AI from 2025 to 2030 as Meta, Microsoft, Amazon and Alphabet ramp infrastructure buildout

Discuss:

• When will $5.3T AI spending start making real profits?
• Which companies benefit most from it?
• Will all this spending hurt Big Tech margins and stock prices first?

Source: https://finance.yahoo.com/sectors/technology/article/meta-microsoft-amazon-and-alphabet-are-about-to-spend-a-shocking-amount-of-money-to-dominate-the-ai-era-115359575.html

The artificial intelligence spending for Big Tech has only just begun.

The news: Goldman Sachs strategist Amanda Lynam has put some fresh numbers on hyperscaler capex spending on AI, and it’s eye-popping.

Goldman now expects a combined $5.3 trillion of capex spending for the four largest hyperscalers — Meta (META), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) — from fiscal year 2025 to fiscal year 2030. Prior to the start of first quarter earnings, this figure stood at $4.5 trillion.

The baseline aggregate capex estimate stands at $7.6 trillion between 2026 and 2031, across compute, data centers, and power.

The analysis: Google, Amazon, Microsoft, and Meta alone collectively plan to allocate $725 billion to capital expenditures in 2026 — up a staggering 77% from last year’s already record-breaking $410 billion.

Amazon is projecting $200 billion in capital expenditures, Alphabet is targeting $175 billion to $185 billion, Meta is guiding $115 billion to $135 billion, and Microsoft is tracking toward $190 billion for the calendar year.