Meta, Microsoft, Amazon and Alphabet post positive quarterlies

Meta and Alphabet are bumping up capex by billions as the AI race shows no signs of slowing down.

Earlier this year, Meta, Amazon, Google and Microsoft announced planned capital expenditures of a massive $650bn collectively as they ramped up their AI and cloud spending, sparking concern in investors and driving share prices down as a result.

These massive investments were expected to cause $900bn in collective damages to Amazon, Google and Microsoft’s market capitalisation.

But AI-related capital expenditures are showing no signs of slowing down, with Big Tech giants Meta and Alphabet collectively announcing a capex bump of about $15bn.

“The public cloud platform earnings numbers are big as usual, but the capital investments to achieve them are getting big faster,” said Forrester’s principal analyst Lee Sustar. “That’s why questions will persist about the sustainability of hyperscaler AI data centre buildouts.”