# Big Tech plans at least $720 billion in 2026 spending

> Amazon, Microsoft, Alphabet and Meta plan record outlays, but returns from AI remain uncertain as Google’s AI search earns less from ads.

Oossa · 2026-11-05 · https://oossa.com/en/big-tech-plans-at-least-720-billion-in-2026-spending

Amazon, Microsoft, Alphabet and Meta told investors they plan to spend at least $720 billion on capital projects this year, with most of it going toward AI infrastructure. The Verge reports that this comes on top of at least $1 trillion in commitments for future years. The plans helped trigger a sharp selloff in tech stocks last week, though prices began to recover this week.

The companies’ sales are growing, but it is not yet clear that AI is earning enough to justify the spending. Amazon reported its fastest growth in five years for the quarter, Meta’s ad revenue is rising, and Google Cloud’s revenue more than doubled in a year. Still, investors are asking when the spending will pay off.

## AI search puts pressure on Google’s ads

Google offers a clear example of the tension. Alphabet executive Philipp Schindler said that growth in AI Mode queries had affected revenue because those searches were earning less from ads. Google Search ad revenue grew 12 percent in the third quarter, down from 17 percent in the same quarter last year. Schindler said the company’s ad experiments for AI Mode had shown promising results, but did not give specific examples.

That leaves Google trying to grow a new AI search product while its established search business grows more slowly. Alphabet shares fell 13 percent in one day last week, their biggest single-day drop, as investors reacted to the company’s spending plans and business outlook.

## Executives expect spending to rise

Alphabet plans to spend $195 billion to $205 billion this year and expects spending to increase significantly in 2027. Amazon plans $220 billion in capital expenditures this year, and CEO Andy Jassy said next year’s amount would be meaningfully higher. Meta expects to spend $135 billion to $145 billion this year; CEO Mark Zuckerberg said improving compute efficiency tenfold next year would require significant investment.

The pressure is not limited to the largest tech companies. Anthropic reported $17 billion in revenue for the quarter, more than 1,000 percent above the same period last year, but its computing costs reached $17.5 billion. Microsoft, meanwhile, spent $45.2 billion on capital projects in the quarter, below the expected $50 billion because of delays in third-party capacity. It later announced a $25 billion bond sale.

## The facts

- Amazon, Microsoft, Alphabet and Meta plan at least $720 billion in capital expenditures this year, mostly for AI infrastructure.
- Alphabet Search ad revenue grew 12 percent in the third quarter, compared with 17 percent in the same quarter last year.
- Anthropic reported $17 billion in quarterly revenue and $17.5 billion in computing costs.
- Microsoft announced a $25 billion bond sale after reporting $45.2 billion in quarterly capital expenditures.

## Why it matters

For people using Google Search, the company says AI Mode queries currently earn less from ads, so more AI use does not yet mean more ad revenue. For communities considering data-center restrictions, candidates who favor limits won in the recent elections, but whether new rules will slow construction remains unclear.

## Sources & references

1. [Big Tech’s big AI buildout will not end until someone stops it](https://www.theverge.com/ai-artificial-intelligence/1027344/amazon-microsoft-alphabet-google-meta-data-centers-earnings-q3) – The Verge, 2026-11-05

Last updated: 2026-11-05