Google, Amazon, Meta, Microsoft to Spend Nearly $650 Billion on AI in 2026

Big Tech’s race to dominate artificial intelligence has reached an unprecedented scale. In 2026, just four technology giants—Google, Amazon, Meta, and Microsoft—are expected to spend almost as much on AI and related infrastructure as the Indian government will spend on running the entire country. The comparison highlights not just the scale of AI investment, but also the economic and workforce shifts unfolding across the global tech industry.

Big Tech’s AI Spending vs India’s 2026 Budget

A few days ago, the Indian government presented its Union Budget for the financial year 2026–27, pegging total expenditure at around $670 billion. Shortly after, a startling comparison emerged from the global tech sector.

According to Bloomberg, a group of just four technology companies—Amazon, Google, Meta, and Microsoft—are expected to spend nearly $650 billion on AI development and supporting infrastructure in 2026. That means the AI budgets of these firms alone could rival what India plans to spend on defence, healthcare, education, infrastructure, welfare, pensions, and subsidies for a population of nearly 1.5 billion people.

How Much Each Company Plans to Spend on AI in 2026

Amazon Leads the AI Spending Race

Amazon is expected to be the single largest spender among the group. The company has informed investors that its capital expenditure could reach around $200 billion in 2026, driven largely by surging demand for AI capacity on its AWS cloud platform.

Google and Alphabet’s Massive AI Push

Alphabet, Google’s parent company, is close behind. It has indicated that its spending could rise to between $175 billion and $185 billion, with AI systems, data centres, and cloud infrastructure forming the backbone of its strategy.

Meta and Microsoft Ramp Up Investments

Meta has projected capital spending of $115 billion to $135 billion in 2026 as it pivots aggressively toward AI development. Microsoft’s spending trajectory has been equally steep. The company recently reported a 66 per cent jump in capital expenditure in the second quarter, prompting analysts to estimate its total capex could approach $120 billion for the fiscal year ending in June.

Where the AI Money Is Going

A significant portion of this enormous investment is being channelled into building AI infrastructure. This includes:

• Massive hyperscale data centres

• High-performance servers

• Advanced networking hardware

• Specialised AI chips and GPUs

These systems power everything from chatbots and image generators to enterprise AI platforms and large-scale automation tools.

Why AI Spending Has Reached Astronomical Levels

The scale of AI investment in 2026 is unprecedented—even by tech industry standards. The combined AI expenditure of these companies mirrors the entire GDP of several developed nations, including Sweden, which recorded a GDP of around $620 billion in 2025.

Industry leaders believe the sector has entered what many describe as the “AI endgame”—the idea that long-term dominance will belong to those who control the most advanced AI systems and infrastructure.

This belief was reflected in Amazon CEO Andy Jassy’s statement on February 6:
"I passionately believe that every customer experience that we know of today is going to be reinvented with AI. So we're going to invest aggressively here, and we're going to invest to be the leader in this space,”

Massive AI Spending, But Not Good News for Employees

While these investments underline Big Tech’s confidence in AI, they also come with a troubling contradiction for employees.

Amazon’s planned $200 billion capex comes just days after it fired around 16,000 employees, bringing total layoffs since October to nearly 30,000. Similar patterns are visible across the industry.

The concern is that as companies allocate more capital toward AI infrastructure, they may look to offset costs by reducing human headcount.

When Microsoft laid off 9,000 employees last year, it told the BBC:
“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”

Similarly, Amazon stated during its latest layoffs:
“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,”

AI vs Human Capital — A Growing Tension

Meta’s strategy highlights the same trend. The company recently scaled back its metaverse and virtual reality initiatives, cutting 10 per cent of Reality Labs staff, even as it doubles down on AI-focused development.

The underlying message across Big Tech is clear: GPUs, servers, and data centres may increasingly take precedence over traditional roles. As AI infrastructure spending accelerates in the coming months, tech employees could find themselves taking a back seat in an industry undergoing rapid transformation.

Conclusion

Big Tech’s planned AI spending in 2026 represents a historic shift in how capital is allocated in the global economy. With investments rivaling national budgets, the race to dominate artificial intelligence is reshaping priorities across the technology sector. While AI promises efficiency, innovation, and long-term growth, it also raises pressing questions about employment, workforce stability, and the future role of humans in an AI-driven world.