Catenaa, Friday, February 06, 2026- Microsoft, Alphabet, Amazon, and Meta are on track to spend upward of $650 billion on AI investments this year, as the four big tech companies look to scale up their AI capacity.

Amazon said on Thursday it would invest about $200 billion in capital expenditures in 2026, following Alphabet’s announcement on Wednesday that its capex would fall between $175 billion and $185 billion this year.

Late last month, Meta told investors it would spend anywhere from $115 billion to $135 billion in 2026, while Microsoft’s annual run rate for its 2026 fiscal year, which began in July, would put the company on pace for capital expenditures of $145 billion.

At the low end of that range, the four would spend about $635 billion, marking a roughly 67% spike from the companies’ $381 billion in expenditures in 2025.

At the high end of their guidance, the group would spend around $665 billion, or a 74% jump from the previous year.

The vast majority of that spending will go to AI chips, servers, and data center infrastructure, the companies said.

Investors have expressed some misgivings about these new spending plans.

Amazon stock fell more than 7% on Friday following the company’s announcement. Alphabet shares fell 3% following their announcement, and Microsoft stock fell by over 11% after its quarterly results, which were also tainted by slightly slower growth in its Azure cloud unit.

Meta stock rallied after the company announced its quarterly results and spending plans, which revealed how AI is boosting the social media giant’s ad revenue.

While investors may be waiting to see the benefits of AI spending better reflected in hyperscalers’ revenues, chip designers such as Nvidia, Broadcom, and AMD are set to benefit from tech giants’ massive investments.

Nvidia and Broadcom shares rose over 7.3% Friday following Amazon’s announcement of its $200 billion spending plan, while AMD spiked over 7.8%.