tech
February 7, 2026
Big Tech stocks plummet on record AI spending
US tech stocks slumped on Friday as Amazon, Microsoft, Google, and Meta announced $660 billion in AI spending
TL;DR
- Amazon, Microsoft, Google, and Meta plan to spend a combined $660 billion on AI in 2026.
- Investors are concerned that AI capital expenditures may exceed earnings potential.
- Amazon, Google, and Microsoft have collectively lost $900 billion in market value recently.
- Amazon plans to spend $200 billion in 2026 on AI, robotics, chips, and satellite projects.
- Alphabet plans to nearly double its capital expenditures next year, primarily for cloud and AI.
- Microsoft's future cloud contracts are significantly tied to OpenAI.
- Apple's stock gained as its AI infrastructure spending remained low.
- Concerns exist about a potential financial bubble due to concentrated AI investment flows.
- Most CEOs report not yet seeing financial returns from AI investments.
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