Big Tech Spends Billions on AI Race, Defying Economic Slowdown

As of August 1st, 2025, the race for AI supremacy among Big Tech companies shows no signs of slowing down. In their recent quarterly earnings calls, tech giants Amazon, Microsoft, Google, and Meta have all announced significant increases in their capital expenditures (capex) for the year, driven by their aggressive investments in artificial intelligence.

Amazon, the cloud computing giant, is leading the charge, with plans to spend over $100 billion on AI-related projects in 2025, up from $48.4 billion in the previous year. The company's CFO, Brian Olsavsky, has stated that quarterly capital investments for the rest of the year are expected to mirror the second-quarter spending of $31.4 billion.

Surprisingly, even Google, known for its measured approach, has stunned investors by raising its capex forecast by $10 billion for the year, to a total of $85 billion. Bernstein analyst Mark Shmulik described this move as "out of character" for the cloud giant.

Microsoft, which briefly hit a $4 trillion market value this week, also said it would continue its full-steam-ahead approach to capital investments for the year, with plans to spend $30 billion in the current quarter.

The trend extends to Apple, a company typically known for its austerity. The tech giant has increased its capital expenditures by nearly 50% in the first three quarters of its fiscal year, with CEO Tim Cook attributing the jump to AI investments, including data centers.

Meta, formerly known as Facebook, has also adjusted the bottom of its capex range to $66 million, up from $64 million, as the company continues its aggressive AI hiring spree and a $15 billion investment in Scale AI.

This unprecedented level of investment in AI across the tech industry reflects the intense competition and the perceived importance of this technology in shaping the future of the digital landscape.