Amazon and Alphabet Project Massive AI Infrastructure Spending

Amazon.com and Alphabet Inc. are aggressively expanding their artificial intelligence infrastructure following significant growth in their cloud computing sectors during the first quarter of 2026. Amazon Web Services revenue rose 28% year-over-year to $37.6 billion, while Alphabet's Google Cloud segment grew 63% to $20 billion, maintaining a backlog exceeding $460 billion.

To fund these expansions, Amazon projected capital expenditures of approximately $200 billion for 2026. Alphabet raised its 2026 capital expenditure guidance to between $180 billion and $190 billion and plans to raise over $80 billion through an equity offering. Alphabet CFO Anat Ashkenazi stated that spending would rise significantly further in 2027.

Both companies maintain strong core operations despite high spending and regulatory scrutiny. Alphabet's total revenue increased 22% to $109.9 billion, while Amazon's custom-chip business has surpassed a $20 billion annual revenue run rate.