AI capital expenditure by Alphabet, Amazon, Meta, Microsoft, and Oracle to reach 3% of US GDP by 2027
Five tech giants are on track to collectively spend $1.1 trillion on AI infrastructure in 2027, outpacing the entire US defense budget for the first time
+15.1% (FY ended 2025-12-31 vs FY ended 2024-12-31) 10-K
Annual net income
132,170,000,000 USD (FY ended 2025-12-31, attributable to the company) 10-K
Annual operating margin
32.0% (FY ended 2025-12-31)
Forward P/E
Unavailable: no dated forecast source
Gloria daily close for session Oct 27, 2026. Market cap and trailing P/E use this close with the SEC share total and trailing diluted earnings, each dated next to its figure. Annual revenue, revenue growth, net income and margin show their own fiscal period and link the 10-K. Current context may postdate this article.
Alphabet Inc. and its peers
Company
Price
Market cap
P/E (trailing)
Forward P/E
Annual revenue (USD)
Annual revenue growth
Annual net income (USD)
Operating margin
Alphabet Inc.
GOOGL · Price dated Oct 27, 2026 · tokenized GOOGLx
3,333,751,000FY ended 2025-12-31, attributable to the company · 10-K
75.8%FY ended 2025-12-31
Missing figures stay unavailable. Forward P/E requires a dated source. Annual revenue, revenue growth, net income and margin come from each company's own 10-K, in US dollars, and each row shows that fiscal year. Revenue growth compares the fiscal year with the prior year stated in the same 10-K. Net income is the full year amount attributable to the company, or available to common stockholders where the filing states only that, or consolidated net income. Each row names its basis. Trailing P/E reads "Not meaningful" when the dated trailing diluted EPS is a loss or zero. An operating margin appears only when the filing states both the operating income and the revenue for the same year.
Sources: SEC filings, Gloria daily closes and CoinGecko. Oldest record refresh: Oct 28, 2026, 4:51 PM EDT. Refresh is not a price or filing date. Each row shows its price date and its annual fiscal period. Peers use industry code and company size, or editorial selection. Market cap multiplies that row price by the company share total the latest SEC filing states for every share class together. Trailing P/E divides it by trailing diluted earnings from SEC filings. Rolled earnings per share are approximate because share counts can change between periods. Both appear only when the SEC data carries its date, so they are estimates at one price date, not synchronized filing valuations. Not investment advice.
Token vs underlying stock
Current comparison for GOOGL. Historical observations may postdate this article.
Split-adjusted regular-session stock closes from the existing Gloria shared history, paired only with an observed token price within 45 minutes of 16:00 New York time. Up to 60 matched sessions. No interpolation or missing-date fill. Weekends and known early closes are omitted. Token units are not adjusted for issuer multipliers or dividend treatment. This compares quoted prices, not fair value, executable premiums or arbitrage returns. Solid line: token. Dashed line: stock. Exact quote times and values appear below. Historical observations. Retrieval refers to the token source. Token quote times use UTC. The fixed cohort shows its oldest member fetch.
Alphabet token vs Alphabet stock: exact source values
Quoted token and share units can have different rights, multipliers and dividend treatment. This is not an executable premium or arbitrage signal.
Five companies are about to outspend the Pentagon. Let that sit for a second.
Morgan Stanley projects that combined capital expenditures from Alphabet, Amazon, Meta, Microsoft, and Oracle will hit roughly $1.1 trillion by 2027, representing approximately 3.2% of projected US GDP. To put that in perspective, the annual US defense budget, long considered the ultimate expression of national spending priorities, would be smaller than what five tech CEOs decide to pour into AI infrastructure.
The numbers behind the AI arms race
Morgan Stanley’s 2026 forecast for combined capex across these five companies was recently revised upward to around $805 billion, up from a prior estimate of $765 billion.
Most of this capital is flowing into AI-related infrastructure. Data centers, GPU clusters, and the leases required to house them are consuming the lion’s share of these budgets.
David Sacks, the tech investor and current White House AI and crypto czar, has estimated that AI capex will provide a tailwind of more than 2.5% to GDP growth this year. By 2027, he projects that figure climbs above 3%.
AI, tech, and the markets they move—in one daily briefing.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
For historical context, the late-1990s telecom boom saw inflation-adjusted spending of approximately $200 billion. The current AI investment cycle is set to dwarf that by a factor of five.
What this means for investors
The most obvious play is the companies doing the spending themselves. Alphabet, Amazon, Meta, Microsoft, and Oracle are essentially betting that their AI infrastructure investments will generate returns that justify historically unprecedented capital deployment.
The second-order effects may be more interesting. Companies supplying the picks and shovels for this buildout, think chip designers, data center REITs, power generation companies, and cooling technology providers, stand to benefit from a demand curve that shows no sign of flattening. The revised 2026 forecast from Morgan Stanley, moving from $765 billion to $805 billion, suggests analysts are still catching up to the actual pace of spending commitments.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
