The Verge: Big Tech plans to spend $720 billion on AI this year

Amazon, Microsoft, Alphabet, and Meta told investors they plan to spend at least $720 billion in capital expenditures this year, mostly on AI infrastructure, in addition to at least $1 trillion in commitments for coming years, The Verge reports. The site says the companies have not slowed down, even as investors grow more concerned about when the spending will produce returns. Regulatory uncertainty also increased after voters elected candidates who favor moratoriums and other restrictions on data centers.

The Verge highlights Google’s case: Alphabet’s Philipp Schindler said growth in AI Mode queries affected monetization, while Search ad revenue grew 12 percent in the third quarter, down from 17 percent in the same period a year earlier. Alphabet expects capital expenditures of between $195 billion and $205 billion this year and plans to increase spending significantly in 2027, according to CFO Anat Ashkenazi.