Big Tech's AI spending spree just hit overdrive. Google, Meta, and Microsoft collectively raised their capital expenditure forecasts by tens of billions this week, signaling that the artificial intelligence infrastructure buildout won't slow down despite Fed Chair Jerome Powell's cautious tone on future rate cuts. The message is clear: AI demand is so strong that these companies are willing to spend over $200 billion combined to stay ahead.
The numbers are staggering, and they're only getting bigger. Google just shattered its own spending projections, bumping 2025 capital expenditures to a massive $91-93 billion range - that's up from the already eye-watering $75-85 billion forecast just months ago. But here's the kicker: CFO Anat Ashkenazi told investors to expect "a significant increase" in 2026, according to SEC filings released yesterday.
Meta isn't backing down either. The social media giant raised the floor on its 2025 capex guidance to $70 billion from $66 billion, with CEO Mark Zuckerberg doubling down on the AI bet. "Being able to make a significantly larger investment here is very likely to be a profitable thing," he told analysts during Meta's earnings call, brushing off concerns about returns on these massive investments.
Meanwhile, Microsoft is quietly outspending everyone on a quarterly basis. CFO Amy Hood revealed that Q1 capex hit $34.9 billion - nearly $5 billion above the $30 billion estimate from July. She also dropped a bombshell: capex growth in fiscal 2026 will actually accelerate beyond 2025 levels.
The timing couldn't be more interesting. Federal Reserve Chair Jerome Powell just threw cold water on December rate cut expectations, sending Treasury yields higher and tech stocks initially lower. But these capex announcements suggest Big Tech isn't worried about borrowing costs when it comes to AI infrastructure. The demand signal is that strong.
What's driving this spending frenzy? It's not just hype anymore. Google's Cloud division posted its first $100 billion quarterly revenue milestone, while Meta's AI-powered ad targeting is generating measurable returns. Microsoft's Azure AI services are seeing enterprise adoption accelerate faster than expected.
