AI boom drives record spending

The global AI spending spree is accelerating as Meta, Microsoft, and Google expand investments to fuel the ongoing boom.

Meta raised its capital expenditure forecast to at least $70 billion this year, with even larger spending expected in 2026. 

Alphabet increased its forecast to $91 billion, following a record quarter with $100 billion in revenue. At the same time, Microsoft CEO Satya Nadella said strong demand is pushing more investment in AI infrastructure and talent.

Economists say the AI surge is helping offset slower growth in other sectors.

The Federal Reserve noted that spending isn’t interest-rate-sensitive, reflecting long-term confidence in AI’s productivity potential. 

Beyond chipmakers, companies like Caterpillar report 33% higher power equipment sales driven by data center demand.

However, the boom has yet to generate significant new jobs, even as it fuels record corporate profits.