Key points
- Capex surge outpaces US social programme funding
- Microsoft, Amazon each plan $100bn AI investment
- OpenAI valued at $300bn after new funding round
ISLAMABAD: America’s largest tech companies have entered a spending frenzy in 2025, pouring over $155bn into artificial intelligence so far this year—surpassing what the US government has allocated to education, training, employment, and social services combined.
Recent financial disclosures from Silicon Valley’s biggest players—Meta, Microsoft, Amazon and Alphabet—show capital expenditure (capex) totals already in the tens of billions. Capex, often used as a proxy for AI investment, covers infrastructure like power-hungry data centres and semiconductor chips, according to The Guardian.
Big tech has spent $155bn on AI this year. It’s about to spend hundreds of billions more | Artificial intelligence (AI) | Tech giants have spent more on AI than the US government has on education, jobs and social services in 2025 so far https://t.co/OayzkcpURw pic.twitter.com/1uIn3Z5NeQ
— George Roussos (@baphometx) August 3, 2025
Meta’s year-to-date capex reached $30.7bn, double last year’s figure, including $17bn spent in just the last quarter. Alphabet reported nearly $40bn across two quarters, while Amazon disclosed $55.7bn. Microsoft said it will spend over $30bn this quarter alone—up 50per cent year-on-year. CFO Amy Hood described the spending as necessary for “the expansive opportunity ahead.”
Bigger spending plans
Projections for 2025 are even more staggering. Microsoft and Amazon each plan to invest around $100bn, while Meta expects to spend up to $72bn. Alphabet raised its forecast to $85bn. Combined, the four firms will shell out more than $400bn in AI-related capex—exceeding the EU’s quarterly defence budget, according to the Wall Street Journal.
Big Tech is going all in on AI
$400B+ expected in AI spend for 2025
Microsoft hits $4T. Meta nears $2TThis isn’t hype. It’s the next industrial revolution pic.twitter.com/emcwnaOc0N
— Assad Dar | CEO, OYA Play | CVO, Medieval Empires (@Assad) August 1, 2025
Investors are encouraging the spree. Microsoft’s market cap hit $4tn following its earnings call, with Google and Meta shares also soaring after announcing bigger spending plans.
Even Apple, traditionally cautious with AI, is stepping up. Capex rose to $3.46bn from $2.15bn last year, with CEO Tim Cook saying the company is “significantly growing” its AI investment but declined to give figures.
Elsewhere, OpenAI has raised $8.3bn towards a planned $40bn funding round, giving the ChatGPT creator a valuation of $300bn—highlighting the scale of the ongoing AI arms race.
