Big Tech's AI Spending Spree Hits $1.5 Trillion Mark

Big Tech's artificial intelligence (AI) spending just hit a major milestone. The combined market value of Amazon, Microsoft, and Alphabet added nearly $1.5 trillion during earnings week.

Amazon gained over $400 billion, while Microsoft and Alphabet each added more than $400 billion in market value. However, other tech giants took a hit, with Apple shedding over $350 billion due to supply problems and Meta Platforms erasing over $85 billion as investors questioned the return on its heavy investment in AI technology.

The six firms saw over $2 trillion come in or go out during earnings week, according to CNBC. Big Tech's AI spend is estimated to reach about $800 billion in the next 12 months, but Wall Street has rewritten the rules for AI stocks.

Investors want to see proof that someone is paying for these investments, not just promises of future returns. Amazon, Microsoft, and Alphabet have established cloud platforms that can leverage processors, power, and data center capacity into recurring revenue, making them the clear winners in the AI market.