Big Tech and startups drive massive global AI and deep tech investments

Global venture capital and technology giants are committing massive resources to artificial intelligence and deep tech. Major hyper-scalers, including Alphabet, Amazon, Microsoft, and Meta, are projected to see capital expenditures reach between $720 billion and $760 billion this year, driven largely by AI data centers, GPUs, and power infrastructure. This represents a significant increase from the $413 billion spent in 2025.

However, rising interest rates near 5% and potential inflation driven by high oil prices pose risks to these investments. While these companies generate significant cash, the scale of required spending is forcing increased reliance on debt, corporate bonds, and long-term lease agreements. There is an ongoing debate regarding the gap between these massive infrastructure investments and the actual revenue currently being generated by AI services.

In the startup sector, Mistral AI secured a €3 billion Series D round led by Samsung Electronics to expand European sovereign AI infrastructure. Additionally, Elon Musk’s The Boring Company raised $3 billion in a Series D round led by the UAE government. Other notable funding includes $1 billion for Stoke Space in the aerospace sector and $450 million for The Exploration Company.