Amazon and Google are winning the AI capex race — but what’s the prize?

The article discusses the escalating capital expenditures (capex) by major tech companies, particularly Amazon and Google, as they invest heavily in AI-related infrastructure such as data centers, chips, robotics, and satellites. Amazon leads with a projected $200 billion in capex for 2026, up from $131.8 billion in 2025, while Google follows closely with an estimated $175 to $185 billion, more than doubling its previous year’s spending. Other companies like Meta, Oracle, and Microsoft are also increasing their investments significantly, though Microsoft remains in third place despite notable growth. These investments reflect a shared belief in the critical importance of controlling high-end compute resources to dominate the future AI landscape. Despite the massive spending, investor sentiment has been largely negative, with stock prices falling as investors react skeptically to the enormous financial commitments. This skepticism affects even companies with clear AI strategies and strong cloud businesses, such as Amazon and Microsoft. The article suggests that while investor concerns are significant, they are