Skyrocketing component prices push Big Tech capex to record $725 billion — Microsoft alone attributes $25 billion of AI budget to increased memory and chip costs
Big Tech companies are projecting a combined $725 billion in capital expenditure for 2026, a 77% increase from 2025, driven largely by soaring component prices, particularly for memory chips and AI infrastructure. Microsoft attributes $25 billion of its record $190 billion budget to rising memory and chip costs, while Meta increased its spending forecast by $10 billion due to similar pressures. Despite strong cloud revenue growth, especially at Google Cloud, investor concerns over spending outpacing returns led to market volatility and stock declines for some firms.
- ▪Google, Amazon, Microsoft, and Meta plan to spend a combined $725 billion on capital expenditure in 2026, up 77% from $410 billion in 2025.
- ▪Microsoft's CFO Amy Hood stated that $25 billion of the company's $190 billion capex budget is due to increased memory and chip costs.
- ▪Meta raised its 2026 capex forecast to $125–$145 billion, citing higher component pricing, especially memory, as a key driver.
- ▪Google Cloud reported 63% year-over-year revenue growth, reaching $20 billion in the quarter, with a contract backlog of $460 billion.
- ▪DRAM contract prices rose approximately 95% quarter over quarter in Q1 2026, with further increases expected in Q2, according to TrendForce.
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Tech Industry Big Tech Skyrocketing component prices push Big Tech capex to record $725 billion — Microsoft alone attributes $25 billion of AI budget to increased memory and chip costs MEMBER EXCLUSIVE News Analysis By Luke James published 1 May 2026 Meta cited the same pressure, raising its spending forecast by $10 billion. Google Cloud grew 63%. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Getty Images / Anadolu) Share Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Email Share this article Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Google, Amazon, Microsoft, and Meta plan to spend a combined $725 billion on capital expenditure in 2026, a…
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