According to a Goldman Sachs report dated May 10, 2026, the major hyperscalers, including Amazon, Alphabet, Meta, Microsoft, and Oracle, are projected to spend $755 billion on AI infrastructure this year. That represents an 83% increase from the prior year.

The numbers tell the story

The proportion of capital these companies direct toward buybacks and dividends has fallen to roughly 20%, down from a historical average of 34% between 2017 and 2022.

Alphabet reported zero buybacks in its most recent quarter. A year earlier, it had repurchased $15.1 billion worth of its own stock. Meta has posted zero share repurchases for the last two quarters. Amazon hasn’t bought back shares in nearly four years. Microsoft’s buyback activity, by contrast, has remained relatively stable, making it the exception rather than the rule among its peers.

Taken together, the group has cut buybacks by nearly two-thirds.

Why AI is eating the buyback budget

Goldman Sachs projects that spending growth among these hyperscalers is on pace to reach 100% of operating cash flows. The bank estimates these firms could need an additional $400 billion in net debt to fund the gap.

What this means for investors

Goldman Sachs projects overall S&P 500 buyback growth of just 3% in 2026.