The news: Big Tech’s Q2 2025 earnings reveal Microsoft, Alphabet (Google), Meta, and Amazon are expected to spend up to $364 billion to $400 billion collectively on capital expenditures in their 2025 fiscal years, with the vast majority targeted toward AI-related infrastructure, per The Wall Street Journal.

Our first take: Big Tech is doubling down on generative AI (genAI) as its next growth engine. This massive buildout is already squeezing cloud margins, straining data center capacity and igniting a talent arms race. 

Slowing cloud revenue growth and rising competition from low-cost challengers like DeepSeek and Z.ai raise the stakes. The next few quarters will show which players turn these colossal bets into market leadership—and which ones buckle under the weight of their own ambitions.

This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.

Check out other EMARKETER content related to this story: 

• Microsoft’s AI expansion ambitions outpace its infrastructure growth
• AWS’ data center slowdown could signal strategy shift, not retreat 
• Apple loosens its grip on AI spending—and potential acquisitions
• Reality Labs takes a hit as Meta trims VR staff before earnings report