Amazon just dropped a bombshell that's rattling Wall Street and redefining the AI arms race. The company announced it will pour $200 billion into capital expenditures throughout 2026, with Google hot on its heels at $175-185 billion. It's the biggest infrastructure bet in tech history, but investors responded by hammering both stocks. The question everyone's asking: are these companies building the future or burning cash on an unproven gamble?
The AI infrastructure war just went nuclear, and Amazon is leading the charge with a spending spree that makes previous tech buildouts look quaint. According to Thursday's Q4 earnings report, the company plans to drop $200 billion in capital expenditures across AI, chips, robotics, and low earth orbit satellites in 2026. That's a 52% jump from last year's $131.8 billion, and it represents the single largest infrastructure commitment in tech history.
Google isn't far behind. The search giant revealed in Wednesday's earnings that it's planning between $175 billion and $185 billion in capex for 2026 - nearly double its $91.4 billion spend the previous year. The two companies are essentially in a dead heat, racing to build out data centers and AI infrastructure before anyone else can catch up.
But here's where it gets interesting. Wall Street's reaction wasn't applause - it was panic selling. Both companies watched their stock prices crater as investors digested the astronomical figures. The market's message was clear: show us the returns, not just the receipts.
The spending gap between the leaders and everyone else is staggering. , which , projects $115 to $135 billion in capex spending for 2026. , based on its , should land around $150 billion for the year. , once positioned as the AI infrastructure poster child, is .
