Big Tech has already spent $155 billion on artificial intelligence in 2025. That figure is staggering. It is also more than what the US government has allocated for education, jobs, and social services combined so far this year.
But that is just the beginning.
The spending spree keeps gaining momentum. Over the past few weeks, major tech firms including Meta, Microsoft, Amazon, and Alphabet released their latest financial reports. Notably, these reports clearly show that artificial intelligence now dominates their budgets.
Why Capital Spending Matters
Much of this money goes into capital expenditure, also known as capex. Specifically, this refers to investments in physical assets such as servers, data centers, and advanced chips. These tools are essential for running powerful artificial intelligence systems. As Google confirmed during its latest earnings call, most of its capital expenditure now supports artificial intelligence infrastructure.
Here is how the numbers add up:
- Meta spent $30.7 billion this year. In comparison, that is double what it spent at this time last year.
- Alphabet has already invested nearly $40 billion.
- Amazon has reached $55.7 billion.
- Microsoft, on the other hand, expects to spend over $30 billion this quarter alone.
And the Spending Will Keep Rising
Looking ahead, the forecasts show even more aggressive investments.
For example, Microsoft plans to invest $100 billion in artificial intelligence development next year. Likewise, Meta aims to spend between $66 and $72 billion. Alphabet has raised its target to $85 billion, while Amazon plans to invest $100 billion. In total, these four tech companies will collectively pour more than $400 billion into artificial intelligence in a single year.
As a result, this signals a major shift in how these companies prioritize their resources.
Apple Pushes Into Artificial Intelligence
Apple, usually quiet about its AI plans, is now stepping up. It spent $3.46 billion this year, up from $2.15 billion last year.
CEO Tim Cook said Apple has moved teams to work on AI across its devices and platforms. He did not share exact figures but confirmed that Apple is investing much more in AI.
Startups Join the Artificial Intelligence Rush
At the same time, smaller players are jumping into the artificial intelligence race. OpenAI, for instance, recently raised $8.3 billion toward a $40 billion funding goal. With this round, the company’s valuation has now climbed to $300 billion. Clearly, the artificial intelligence boom is not just limited to major technology companies.
What This All Means
Even with all this spending, investors feel confident. In fact, many seem excited. After earnings calls, the stock prices of Microsoft, Alphabet, and Meta jumped. Microsoft even hit a $4 trillion market value the next day.
This shows that Wall Street does not see AI as a cost. Instead, they see it as the future.
And this is just the start.
If the trend continues, AI spending could match what some countries spend. The biggest companies are not just testing AI anymore. They are going all in. For them, AI is not just another tool. It is the core of their future plans.
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