The four hyperscalers have ploughed more than $1tn into capital investments since the AI boom began in 2023, with combined spending reaching $1.1tn by the end of June 2026. They now plan $745bn in capex this year, mainly for data centres, advanced chips and power.

Cloud revenue is accelerating: Google, Amazon and Microsoft all reported rising cloud growth, while Meta’s total revenue jumped 28% year‑on‑year to $61bn, driven by AI‑enhanced advertising. Meta also hinted at leasing its compute capacity at a premium.

New financial commitments are massive: Meta added $233bn in obligations, Microsoft signed over $130bn in data‑centre leases, and together the three firms agreed close to $900bn of AI‑related commitments in a single quarter. Combined free cash flow fell to a decade low of $7bn, with only Microsoft and Meta generating positive cash flow.

Analysts warn there is "basically no end in sight" for capex growth, and the long lag between upfront data‑centre spend and revenue means investors may wait years for meaningful returns.