Big Tech AI spending to exceed $700 billion in 2026, up from $600 billion previously expected

Capital expenditure on AI infrastructure by major technology companies is projected to surpass $700 billion in 2026, a significant upward revision from the $600 billion estimate at the start of the year. Google Cloud led the surge with 63% revenue growth, outpacing both Amazon and Microsoft in cloud expansion. Alphabet CEO Sundar Pichai reported that GenAI product revenue grew nearly 800% year-over-year in Q1 2026, with Google Cloud recording $20 billion in revenue and beating analyst estimates. The escalation reflects the widening gap between AI infrastructure demand and available compute, driving hyperscalers to commit unprecedented capital to data centers, custom chips, and energy infrastructure.