AI spending sets a record, with no end in sight
Amazon, Google, Microsoft, and Meta spent a record US$130.65 billion on capital expenditures in the first quarter of 2026, primarily on AI-powered data centers, marking a 71% increase from the same period last year. The companies collectively plan to spend around US$700 billion on AI infrastructure in 2026, driven by confidence in long-term returns. Despite initial investor concerns, recent successes like Anthropic’s Claude Code have bolstered confidence in the profitability of AI investments.
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AI spending sets a record, with no end in sightSign up now: Get ST's newsletters delivered to your inboxAn aerial view of the Amazon Web Services complex in New Carlisle. The company, along with Google, Microsoft and Meta, has spent billions on capital expenditures, largely data centres.PHOTO: AJ MAST/NYTIMESKaren WeisePublished Apr 30, 2026, 08:13 AMUpdated Apr 30, 2026, 08:18 AMListenSEATTLE – For the past two years, Amazon, Google, Microsoft and Meta have repeatedly set records for how much they are spending on artificial intelligence.On April 29, the four giants did it again.In the first three months of the year, the four companies reported in their financial results, they plowed a total of US$130.65 billion (S$167.29 billion) into capital expenditures, largely spending on data…
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