tech
January 27, 2026
Tech's massive AI spend is under scrutiny ahead of earnings. Here's what to watch
The fourth-quarter earnings season will give the megacaps an opportunity to lay out their 2026 spending visions and, in some cases, defend those plans.
TL;DR
- Tech megacaps are significantly increasing capital expenditures for AI infrastructure, with hyperscalers expected to spend over $470 billion in 2026.
- Investors are demanding clear returns on investment from AI spending, with some concerned about an AI bubble and potential losses, particularly for Meta.
- Microsoft is focused on controlling costs for data center builds and supporting Azure, while also diversifying its AI partnerships.
- Meta is investing heavily in AI with a less clear monetization strategy tied to advertising revenue, facing investor concerns about earnings impact.
- Apple is slowly integrating AI, notably with a deal with Google for Siri, but faces risks of falling behind rivals.
- Amazon is increasing capex for AI services and competing with Azure in cloud infrastructure, with a significant deal with OpenAI.
- Alphabet's AI strategy has boosted its stock, with increased spending forecasts and key partnerships with OpenAI and Apple.
- Tesla's AI investments are tied to its robotics and Robotaxi ventures, with a different focus compared to its peers, and investors are watching its chip production plans.
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