Hyperscalers are tightening AI spend; Alphabet, Amazon, Meta and Microsoft kept 2026 capex flat or slightly lower.
Space X doubled its Q4 capex guide to $35bn–$40bn after buying xAI; Elon Musk claims rocket expertise speeds data‑center build‑out.
Musk predicts 2.5–3GW compute by end‑2026 and 10GW in 2027, adding $500bn to hyperscaler forecasts; Space X accounts for all current‑year upgrade and 62% of the 2027‑28 upgrade.
Lease financing hides more spend; Morgan Stanley notes the IPO inflated long‑term forecasts; Musk hints at a non‑zero chance of 20GW next year, but his track record makes such guidance uncertain.
Source: Financial Times Companies · Summarized by HeadlinesBriefing