Big Tech pours $344B into AI spree

September 2, 2025

The world’s biggest tech giants — Microsoft, Amazon, Meta, and Alphabet — are entering a year of unprecedented investment, planning to pour a combined $344 billion into artificial intelligence in 2025. This is not just about ambition to lead the market but also about fear of falling behind without such massive commitments.

Meta plans to spend up to $65 billion on AI this year, aiming to secure nearly 1 gigawatt of compute power supported by more than 1.3 million GPUs. Microsoft is on the same track, allocating over $30 billion in capital expenditures just this quarter to expand its Azure cloud platform and build additional AI data centers.

Amazon leads with more than $100 billion earmarked for AI capacity within AWS, which CEO Andy Jassy described as a “once-in-a-lifetime opportunity.” Alphabet, Google’s parent company, is also ramping up spending to keep pace in this increasingly fierce race.

For comparison, Big Tech’s total capital expenditures in 2024 were around $230 billion. This year’s figure represents a 60% increase, clearly showing that the fear of falling behind in the AI compute race has outweighed earlier ideas of corporate belt-tightening.

These investments may lay the foundations for a new industrial era, where those controlling AI infrastructure will control the future of technology. Yet, many warn that they could just as easily inflate a new tech bubble, with consequences that might only become clear later.

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