Huan Qiu Wang·2026-02-07 01:45Core Insights - The global competition in the artificial intelligence sector is intensifying, with the four major tech giants—Alphabet, Amazon, Meta, and Microsoft—planning a combined capital expenditure of approximately $650 billion by 2026, marking a record high for the century [1][2] Group 1: Capital Expenditure Plans - Each of the four tech giants aims to dominate the AI tools market, with their 2026 capital expenditure budgets nearing or exceeding the total of the past three years, indicating a significant increase in investment [2][3] - Meta plans to increase its capital expenditure to $135 billion in 2026, reflecting an 87% year-on-year growth, while Microsoft’s capital expenditure is expected to approach $105 billion, a 66% increase [3] - Alphabet's capital expenditure is projected at $185 billion, significantly exceeding analyst expectations, and Amazon's target is set at $200 billion, making it the largest investor among the four [3] Group 2: Economic Impact and Market Reactions - The substantial investments in AI are expected to create a ripple effect, leading to record-high borrowing in related sectors and exacerbating energy supply issues [2][5] - Following the announcements of capital expenditures, the combined market value of the four tech giants has dropped by over $950 billion, with Amazon's stock experiencing an 8% decline in a single trading session [3][4] Group 3: Industry Dynamics and Future Outlook - The massive investments are based on the belief that AI tools will become integral to human work and life, with high costs associated with developing advanced AI software models [4] - There are concerns regarding potential bottlenecks in the supply chain, as the giants compete for limited resources like electricians and construction materials, which may hinder their ambitious investment goals [5] - Despite having substantial cash reserves, the ongoing AI investments are straining the companies' finances, leading some to explore borrowing options, which could expand the debt market significantly [5][6]