Big Tech's $720 Billion AI Spend Spooks Wall Street as Returns Stay Elusive
Updated
Updated · The Verge · Nov 5
Big Tech's $720 Billion AI Spend Spooks Wall Street as Returns Stay Elusive
3 articles · Updated · The Verge · Nov 5
Summary
$720 billion in 2026 capital spending plans from Amazon, Microsoft, Alphabet and Meta triggered a sharp tech selloff last week as investors questioned when AI infrastructure will start paying off.
More than three years into the buildout, revenue is still not clearly covering costs: Alphabet said AI Mode carries lower monetization, and its stock fell 13% in its worst one-day drop after earnings.
The spending push is still accelerating. Alphabet plans $195 billion to $205 billion this year and higher 2027 outlays, while Amazon said 2027 spending will exceed its planned $220 billion for 2026.
Profitability concerns extend beyond Big Tech: Anthropic posted $17 billion in quarterly revenue against $17.5 billion in compute costs and has nearly $900 billion in future infrastructure commitments.
Tech shares rebounded this week as investors weighed whether midterm winners favoring data-center restrictions could slow the buildout and give companies more time to make AI profitable.