Big Tech Capex Surge Driven by AI Infrastructure Buildout (legrandcontinent.eu)

• Combined Capex of $130.65B in Q1 2026.
• Concentration on Nvidia hardware and data center energy scaling.
• Growing divergence between massive infrastructure spending and tangible AI revenue.

"Amazon, Alphabet, Microsoft, and Meta reported a combined $130.65 billion in capital expenditures for Q1 2026, marking a 71% year-on-year increase. This spending surge, which surpasses the historical inflation-adjusted cost of the Manhattan Project, is focused on procuring specialized AI processors from Nvidia and expanding physical data center capacity and associated power grids. While the market remains supportive, the lack of immediate revenue realization from generative AI is prompting analyst concerns about the long-term sustainability of such capital allocation."