Alphabet plans to more than double its capex to $175-185B in 2026, surpassing all hyperscaler peers in AI infrastructure investment.

Venture capitalists and industry analysts warn that the AI bubble is beginning to show cracks, with sustainability concerns about OpenAI and questions about whether massive capital expenditures will deliver promised returns.

Apple, Meta, Microsoft, and Tesla report earnings this week with hyperscalers expected to increase capital expenditures to over $470 billion in 2026, up from $350 billion.

Microsoft, Amazon, Alphabet, and Meta are projected to spend $475 billion on AI infrastructure in 2026, double the 2024 figure. Investors are demanding evidence that massive AI investments will generate measurable returns in upcoming earnings reports.