Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) are pushing Big Tech’s AI infrastructure spend toward an estimated $400 billion, with public filings already showing $344 billion this year.
The increase is funding data centers, AI ready servers and model training as Morgan Stanley sees the surge adding up to 0.5% to U.S. GDP in 2025 and 2026 and projects $2.9 trillion in related investment from 2025 to 2028.
Microsoft set a record with $24.2 billion in capex last quarter and plans more than $30 billion this quarter, while Amazon (NASDAQ:AMZN) logged $31.4 billion, and Alphabet raised its full year capex forecast to $85 billion.
Meta raised the low end of 2025 guidance and is expanding its internal AI unit, signaling further planned spending.Wall Street has reacted unevenly: Microsoft and Meta shares climbed, with Microsoft hitting a $4 trillion value and Meta up more than 8%, while Amazon slid 8% after weak cloud results. Apple remains an outlier with $9.47 billion invested over nine months, up 45% year over year, prioritizing efficiency.
This article first appeared on GuruFocus.