The Kobeissi Letter posted on X that major technology companies, including Amazon, Alphabet, Meta, and Microsoft, are projected to significantly increase their capital expenditures (CapEx) by 2026. The combined CapEx of these companies is expected to rise by 70% year-over-year, reaching a record $610 billion. This figure is nearly three times the $217 billion projected for 2024 and more than four times the levels of 2023.
Amazon is anticipated to lead this surge with planned spending of $200 billion, followed by Alphabet at $180 billion, Meta at $125 billion, and Microsoft at $105 billion. Each of these companies is expected to spend nearly as much in 2026 alone as they did in the previous two years combined, or even more. Individually, all four companies would break the record for the highest annual CapEx spent by a single company over the last decade.
This unprecedented increase in spending is largely driven by the rush to develop AI infrastructure, highlighting the growing importance of artificial intelligence in the tech industry.