Meta, Google, Microsoft boost AI spending; capex hits USD 34.9B, up USD 5B
Meta, Google and Microsoft - the three firms that pretty much own cloud and social-media - are all throwing extra cash at AI this quarter. Analysts have been poking around their balance sheets, trying to spot how much they’ll actually spend on the chips, data-center upgrades and research teams needed to keep their AI services in the game. The latest earnings reports show a clear bump in spending; each company is flagging bigger budgets for custom silicon and new infrastructure.
It doesn’t look like a tiny tweak - it feels more like a deliberate push to stay ahead of rivals in a space that now sits at the heart of product roadmaps and revenue outlooks. Investors are watching closely, wondering how the numbers stack up against earlier guidance and last year’s results. Capital expenditures hit $34.9 billion this quarter, with most of that going into AI-related hardware.
That’s almost $5 billion above what was forecast and about a 74 percent rise from the same period a year ago. Microsoft, however, didn’t spell out a specific forecast for its…
Its capital expenditures were $34.9 billion this quarter, with much of the investment going toward AI infrastructure. That figure is nearly $5 billion more than previously forecasted, and a 74 percent jump up from the same quarter a year ago. While Microsoft didn't offer a specific forecast for its AI capital expenditures for the next quarter or coming year, the company's chief financial officer, Amy Hood, said that the company's total spend will "increase sequentially, and we now expect the fiscal year 2026 growth rate to be higher than fiscal year 2025." Tech companies are making these ambitious plans for more capital spending under the assumption that demand for AI will only continue to grow.
Meta, Google and Microsoft are all hinting that AI-related capex is picking up speed. Meta’s spend this quarter hit $34.9 billion - about $5 billion more than it had expected and up 74 percent from a year ago. The company now sees total capex in the $70 billion-$72 billion range, a notch higher than the previous $66-$72 billion window.
CFO Susan Li mentioned next-year’s budget will be “notably” larger, but she didn’t put a number on it. Google and Microsoft have signaled similarly aggressive plans, although Microsoft stopped short of giving any forward figure.
So, what does that mean for us investors? The headline numbers point to a clear tilt toward AI-focused hardware and cloud capacity, yet the piece offers no clue on how much revenue or profit might rise. It’s unclear whether the bigger spend will be paid back by market demand or a competitive edge. The quarter’s results show the firms are okay with bigger cash burns - whether that translates into sustained earnings growth is still up in the air.
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Common Questions Answered
What total capital expenditure did Meta report for the quarter, and how does it compare to its previous forecast?
Meta reported capital expenditures of $34.9 billion for the quarter, which is roughly $5 billion higher than its prior outlook. This represents a 74 percent increase compared with the same quarter a year earlier.
How did Microsoft’s chief financial officer describe the outlook for the company’s AI‑related spending in upcoming periods?
Microsoft CFO Amy Hood said the company’s total spend on AI infrastructure will "increase sequentially," indicating a steady rise quarter over quarter. She did not provide a specific dollar forecast for the next quarter or the full year.
What annual capital‑expenditure range is Meta now projecting, and how does this differ from its earlier guidance?
Meta now projects total capex for the year between $70 billion and $72 billion. Earlier guidance had a broader range of $66 billion to $72 billion, so the lower bound has been raised by $4 billion.
According to the article, what overall trend are Meta, Google, and Microsoft showing in AI infrastructure spending?
All three companies are accelerating AI infrastructure spending, with each reporting larger budgets for data‑center upgrades and custom chips. The trend reflects a competitive push to keep their AI services ahead of rivals in the cloud and social‑media markets.