Alphabet, Amazon, and Meta increase capital expenditure forecasts

Major technology companies are significantly increasing their capital expenditure to expand computing capacity. Alphabet has raised its 2026 capital expenditure forecast to between $195 billion and $205 billion, while Amazon has indicated approximately $200 billion and Meta has projected between $130 billion and $145 billion.

This massive investment in infrastructure—including power plants, chips, fiber optics, and server complexes—coexists with a trend toward more accessible AI models that can run on consumer-grade hardware, such as mini PCs. While some debate whether AI represents a market bubble, there is a distinction between the technical capabilities of the models and the stock market valuations of their providers.