AI Spending Is Heading for a Trillion Dollars a Year

Big Tech is spending roughly $700 billion to $900 billion on AI this year, and two of the biggest spenders have had quarters where the bill outran their cash.

TL;DR

The largest tech companies are pouring something like $700 billion to $900 billion into AI data centers and chips this year, and the bill for 2027 is projected to pass $1 trillion. That money fuels nearly every fast AI timeline, from faster drug discovery to bigger models, and the question now is whether they can keep paying for it. Two of the biggest spenders, Meta and Alphabet, have each had a quarter in which they spent more cash than their businesses brought in, and parts of the bond market are getting nervous. If the money keeps flowing, the machines that could speed up science arrive on schedule. If it stumbles, the build-out likely slows rather than stops.

Below the line, for paid subscribers: The full story: where it stands, how we got here and what's dated next; our Odds board on 5 milestones, starting with "Alphabet guides 2027 spending above its 2026 plan by 2026"; and every source.