Microsoft, Amazon, Meta project $670B

Alphabet, Amazon, Meta and Microsoft are headed toward roughly $650 billion of capital spending in 2026, with AI data centers and chips taking the biggest share. (reuters.com 1) (reuters.com 2) Bridgewater Associates estimated in February that the four companies would invest about $650 billion this year, up from about $410 billion in 2025. Reuters reported that figure after Amazon, Alphabet and Meta laid out larger budgets and Microsoft kept expanding capacity. (reuters.com) Amazon is the largest single spender in the group, with 2026 capital expenditure projected at about $100 billion, according to Reuters. Alphabet, Meta and Microsoft have also pointed investors to heavier spending on servers, networking gear and new data-center campuses. (reuters.com) (cnbc.com) Capital expenditure is the money companies spend on long-lived equipment and buildings, not day-to-day payroll or marketing. In the AI race, that usually means buying graphics processing units, building warehouses full of computers, and securing enough electricity to run them. (cnbc.com) (reuters.com) The spending has become the central question of this earnings season because investors want proof that demand is keeping pace with construction. Reuters reported on April 28 that Wall Street is looking for signs the hundreds of billions already committed will translate into stronger cloud sales, advertising revenue and profit. (reuters.com) Microsoft has said AI demand is outrunning available capacity in Azure, its cloud platform, a sign that the company still sees room to add more servers. CNBC reported in February that the four hyperscalers together were approaching $700 billion of projected 2026 spending as each pushed to avoid falling behind in compute. (cnbc.com) Meta is spending to train and serve its Llama models and to support AI features across Facebook, Instagram and WhatsApp. Alphabet is funding both Google Cloud capacity and its Gemini push, while Amazon is expanding Amazon Web Services and custom chips such as Trainium. (cnbc.com) (reuters.com) The risk is cash flow. CNBC reported that the bigger budgets were already pressuring free cash flow, while Reuters said investors remain divided over whether the companies are building ahead of demand or simply trying to keep up with it. (cnbc.com) (reuters.com) For now, the number to watch is not $670 billion but about $650 billion, and the debate is less about whether the money will be spent than whether the returns arrive fast enough. (reuters.com 1) (reuters.com 2)