The world’s biggest technology companies are significantly increasing their investment in artificial intelligence as the global AI boom continues to reshape the sector. Meta, Alphabet, and Microsoft have all announced sharp rises in spending on data centres, advanced chips, and AI infrastructure, underscoring their determination to lead in this fast-moving field.

Meta revealed that its capital expenditure for 2025 will reach between $70bn (£53bn) and $72bn, higher than previously forecast. The company added that spending in 2026 will grow “notably larger” as it accelerates AI development to enhance advertising tools and create new products. Chief executive Mark Zuckerberg said the firm was “compute-starved” and needed to move faster to capitalise on AI-driven opportunities.

Alphabet, the parent company of Google and YouTube, has raised its investment outlook to between $91bn and $93bn for this year — almost double its 2024 spending. Meanwhile, Microsoft reported quarterly capital expenditures of $34.9bn, well above analyst expectations, as it expands its Azure cloud and AI services. CEO Satya Nadella said the company was “investing heavily in AI and talent to meet the massive opportunity ahead.”

While the surge in AI spending has boosted tech stocks and investor confidence, analysts say the focus is now shifting toward measurable returns. Economists note that alongside strong consumer activity, AI-related investment remains a key driver of US economic growth.