How much are the Magnificent 7 tech firms spending on innovation in 2025?

The Magnificent 7 tech firms, including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, are expected to collectively spend $650 billion on capital expenditure and research and development in 2025.

What is the trend in U.S. corporate investment patterns?

While investment in IT equipment and software has surged to 6.1% of GDP, private fixed and non-residential investment, excluding IT, has declined for three consecutive quarters. This suggests firms are prioritizing emerging technologies like AI over traditional investments.

How does the tech giants' spending compare to the UK government's public investment?

The $650 billion that the Magnificent 7 tech firms are expected to spend on innovation in 2025 exceeds the U.K. government's annual public investment spending.

Home / Business and Economy / Tech Giants Outspend UK Government on Innovation

Tech Giants Outspend UK Government on Innovation

3 Aug

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Summary

Mag 7 tech firms to spend $650B on capex and R&D in 2025
IT equipment and software investment surges to 6.1% of GDP
Non-IT investment declines for 3 consecutive quarters

Tech Giants Outspend UK Government on Innovation

As of August 3rd, 2025, the Magnificent 7 tech giants - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla - are poised to collectively spend a staggering $650 billion on capital expenditure and research and development this year. This amount exceeds the U.K. government's annual public investment spending.

The data, tracked by Lloyds Bank, highlights a stark contrast in corporate America's investment patterns. While President Trump's tariff war aimed to spark a manufacturing boom, the tech titans have firmly focused their spending on "bits" rather than "bricks and mortar."

This trend is evident in the broader economy as well. U.S. corporate spending on IT equipment and software has surged to $1.45 trillion, accounting for 6.1% of GDP. In contrast, private fixed and non-residential investment, excluding IT, has shrunk for three consecutive quarters. Experts suggest this could be driven by a "fear of missing out" on the artificial intelligence boom, as firms divert resources towards fashionable AI-related projects.

The continued dominance of "bits" spending in corporate America should reassure those concerned that the administration's focus on manufacturing may siphon capital away from the technology sector, including emerging avenues like cryptocurrencies.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.