NYU valuation expert warns Microsoft, Amazon, Meta, and Google lack clear AI revenue models despite record capital expenditures.
Microsoft, Amazon, Meta, and Alphabet are projected to spend up to $745 billion on capital expenditures this year, with AI infrastructure driving the surge. The combined outlay reflects a competitive push to dominate artificial intelligence, though returns remain uncertain.
Amazon leads with an expected $220 billion, followed by Alphabet at $195 billion to $205 billion, Microsoft at $175 billion, and Meta at $130 billion to $145 billion. Analysts note the spending is fueled by fear of falling behind rather than proven monetization strategies.
Critics argue the investments resemble speculative bets rather than disciplined capital allocation. The lack of defined business models raises concerns about long-term profitability, despite the companies’ financial capacity to sustain the spending.