US tech giants including Microsoft, Alphabet, Amazon, and Meta are projected to spend between $600 billion and $725 billion on AI-related capital expenditures by 2026, up from approximately $150 billion in 2023. Goldman Sachs estimates total tech sector spending on AI infrastructure could reach $7.6 trillion by 2031. A Bank of America survey found a record 35% of fund managers believe companies are overinvesting in AI, up from just 14% months earlier. Microsoft shares fell over 11% and Amazon dropped more than 8% following earnings reports, as investors increasingly question the lack of tangible returns on these massive investments.
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