tech
AI revenues are growing fast, but not fast enough
YOU AIN’T seen nothing yet. Last year America’s biggest technology companies, including Amazon, Google and Microsoft, spent $450bn on infrastructure, much of it to power artificial intelligence. This was just an amuse-bouche. For the main course they will this year spend $900bn on chips, data centres, power and so forth, with a $1.4trn pudding to follow in 2027. To fund this feast they have borrowed more than $400bn this year. The AI capex boom is fast becoming the largest investment surge in history (see chart 1).
TL;DR
- American tech giants like Amazon, Google, and Microsoft spent $450 billion on infrastructure last year, largely for AI.
- This year's spending is projected to reach $900 billion, with $1.4 trillion expected in 2027.
- Companies have borrowed over $400 billion this year to fund this growth.
- The AI capital expenditure boom is becoming the largest investment surge in history.