Goldman Sachs has raised its forecast for US hyperscaler AI capital expenditures to as high as $1.4 trillion by 2027, up from a prior estimate of $1.1 trillion and well above the Wall Street consensus of $920 billion. The major players driving this surge include Microsoft, Amazon, Alphabet, Meta, Oracle, and OpenAI, which are scaling from experimental AI deployments to commercial-scale operations. More than $400 billion of the projected 2027 spending is expected to come through investment-grade bond issuance, marking a significant shift from the self-funded investment model that defined big tech for two decades. Goldman projects cumulative AI infrastructure spending could reach approximately $7.6 trillion from 2026 through 2031. The bank flags potential constraints including power availability, land accessibility, and memory chip costs that could slow execution.
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