Meta (Meta), Microsoft (MSFT), Amazon (AMZN) and Google -parent alphabet (Goog) expect to spend a cumulative $ 325 billion in capital expenses and investments in 2025 driven by a continuous commitment to building artificial intelligence infrastructure.
In summary, this is an increase of 46% compared to the approximately $ 223 billion that companies reported in 2024.
Tech Giants claim that all these expenses are bearing fruit in the long term. Investors have not been so certain lately.
Uncertainty about the timeline for the payment – together with continuous debates about whether such high expenses are really justified – has delivered concern during the recent income periods.
And the higher than expected investments of the companies for the coming year, just like investors, will investigate the substantial artificial intelligence spending of Big Tech.
An example: Deepseek.
The Chinese startup rattled markets last week after the open-source AI models debuted that is competitive with OpenAIs for a fraction of the prize. Technical shares that were sold across the board, while the model knew doubt about the reasoning behind the gigantic expenses of Tech Giants on artificial intelligence infrastructure.
But the Deepseek surprise did not seem to be an influence on the large spending plans of technology companies.
Amazon is by far the largest spender on the group’s capital investments, with its $ 78 billion before 2024 a lot of embezzlement of Microsoft’s $ 56 billion and Alphabet’s $ 53 billion.
Looking ahead, Amazon said in a call after the win on Thursday evening that the expenditure of $ 26.3 billion in his most recent quarter is “reasonably representative” of its 2025 investment plans, suggesting that investments will amount to around $ 105 billion this year.
“The vast majority of those Capex spending is up to AW for AWS (Amazon Web Services, Amazon’s Cloud Division),” said Amazon CEO Andy Jassy. “AI certainly offers the biggest chance since cloud and probably the biggest technological shift and opportunities in business since the internet.”
Amazon shares fell just over 4%on Friday.
At the end of last month, Meta confirmed that it would spend $ 60 billion- $ 65 billion in 2025, a huge bump of his earlier guidance for investors of $ 38 billion- $ 40 billion in investments for the year.
CEO Mark Zuckerberg said that the company would eventually spend “hundreds of billions of dollars” to invest “in the long term” in AI infrastructure “. That includes investments in building huge data centers, such as the construction of A new facility in Louisiana Almost the Size of Manhattan.
The company is almost $ 56 billion in expenditure during the tax year 2024 (ending on June 31), fed by AI-in combination with lower than expected income linked to artificial intelligence-controlled shares that tumble after the results last summer.
Microsoft recently announced its tax results of the second quarter, which showed that the tech heavyweight has already spent $ 42 billion Expected $ 80 billion in capital expenditure Until now, the shares of the company fell by 6%in 2025 after these results.
Why are investors shitty? Because the income that is generated directly from the AI functions of the companies remains unclear.
When asked how Meta is income with AI, the reaction of the company was more or less “publishing now, ensure later.”
Meta CFO Susan Li said in a post-win call on January 29: “Our first focus for Meta AI is really on building a great consumer experience, and that is to be honest where all our energies are a bit focused at the moment.”
“There will be quite clear opportunities here over time, including paid recommendations and the recording of a premium offer, but that is really not where we are focused in terms of the development of Meta AI today,” added them.
Publish Frenzy? Google -head office in Mountain View, California, United States. (Photo by Tayfun Coskun/Anadolu via Getty images) ·Anadolu via Getty images
Meta shares rose after the winning report despite that lack of clarity, because the company pointed to the rapid recording of its AI tools for advertisers, who increased to 4 million six months ago.
JPMorgan’s Doug Anmuth said: “The return on AI Investments is clearer in the core advertising company of Meta” than that of Google.
In his profit call, Google CFO Anat Ashkenazi said that the cloud segment of the company “generates billions of annual income from AI infrastructure and generative AI solutions” but did not provide details. Ashkenazi added that the demand for the Cloud AI products from Google surpassed capacity. The company refused to respond to Yahoo Finance’s questions about her AI income.
Jassy van Amazon said with regard to $ 105 billion costs for the coming year: “” Both our affairs, our customers and our shareholders will be happy, in the medium to long term, that we have the capital option and the business opportunity in AI pursue, “but it was not specific about how much AI has or will contribute to income.
In the meantime, Microsoft said in his most recent quarterly win report that the total AI activities, which includes Azure AI services and other Copilot and Generative AI offers, an annual $ 13 billion ramp in the period of December 31.
Microsoft said that AI has contributed 13 percentage points to the growth of the Azure turnover, which increased by 31% compared to the previous year. Microsoft AI income is partially powered by the obligations of OpenAI. OpenAi’s own path to income with income is fuzzy, such as the AI startup estimated that it lost $ 5 billion in 2024 and only generated $ 3.7 billion in income.
Despite the investigation of investors from AI expenditure, Wall Street analysts remained positive on large technical shares. Raymond James Analysts wrote in a report of 3 February that while “asking from generating income remains”, there is “evidence for (companies) closing the gorge”.
Morgan Stanley analysts said that the growing expenditure of technology companies “strengthen the bull’s case for AI/Cloud Capex shares.”
Laura Bratton is a reporter for Yahoo Finance. Follow her on bluesky @laurabratton.bsky.social. E -mail her on laura.bratton@yahooinc.com.
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