Technology giants including Amazon, Microsoft, and Alphabet are expected to spend more than $700 billion on artificial intelligence in 2026, up from $80 billion in 2019. The increase is benefiting suppliers of power, cooling, and electrical equipment, such as Caterpillar and Schneider Electric. However, these capital-intensive investments are putting pressure on the free cash flow of hyperscalers and could lead to substantial debt financing. Investors remain divided on Anthropic’s ability to reach a $600 billion valuation by December 31, with market probabilities fluctuating on prediction markets. Funding rounds, partnerships with Amazon and Google, and strategic decisions by hyperscalers will be key determining factors.
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