Big Tech is spending more than ever on artificial intelligence and it’s still not enough

Silicon Valley's biggest companies are already planning to pour $400 billion into artificial intelligence efforts this year. They all say it’s nowhere near enough.

- Meghan Bobrowsky

Amazon.com says it is racing to bring more cloud capacity online as soon as it can.

(BLOOMBERG)

Meta Platforms says it is still running up against capacity constraints as it tries to train new AI models and power its existing products at the same time. Microsoft says it is seeing so much customer demand for its data-center-driven services that it plans to double its data-center footprint in the next two years. And Amazon.com says it is racing to bring more cloud capacity online as soon as it can.

“We've been short [on computing power] now for many quarters. I thought we were going to catch up. We are not. Demand is increasing,” said Amy Hood, Microsoft's chief financial officer. “When you see these kinds of demand signals and we know we're behind, we need to spend.”

Meta, Alphabet, Microsoft and Amazon have all told investors over the past 48 hours that they will increase spending in 2026. Investors gave their blessing to plans laid out by Google and Amazon, with some worrying about those set forth by Meta and Microsoft.

Meta shares closed down 11% on Thursday, and Microsoft’s shares fell by nearly 3%. Google and Amazon shares rose by roughly 6% and 10%, respectively, in after-hours trading.