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Big Tech Posts AI-Fueled Beats as Capex Plans Swell to $725 Billion

Wall Street is testing whether record AI outlays will pay off.

Overview

  • Following Wednesday's earnings, Alphabet, Amazon, Microsoft and Meta topped forecasts with cloud and AI named as the main growth engines.
  • The four outlined up to about $725 billion in 2026 spending for data centers, chips and power to support AI workloads.
  • Alphabet said Google Cloud revenue rose 63% to about $20 billion, with its order backlog near $460 billion.
  • Microsoft introduced a $37 billion annualized AI revenue metric and guided capital spending to roughly $190 billion this year.
  • Investors showed caution after Meta lifted its capex range to $125–145 billion, as a Wall Street Journal report said OpenAI missed internal targets and holds roughly $600 billion in future compute commitments.