Finance
Big Tech's quarter in four charts: AI splurge and cloud growth
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Big Tech firms are heavily investing in AI, with Google Cloud leading in growth. Amazon, Alphabet, and Meta focus on capital expenditure.
Big Tech's AI Investments and Cloud Growth: A Quarterly Overview
Overview of Big Tech's Financial Performance
By Harshita Mary Varghese and Anhata Rooprai
Capital Expenditure
Feb 6 (Reuters) - U.S. tech giants have predicted their spending would surge this year as they double down on artificial intelligence, sharpening investor scrutiny over whether these costly bets would generate enough returns to justify the sector's high valuations.
Cloud Revenue Growth
The group - including Alphabet, Microsoft, Amazon and Meta - is expected to pour more than $630 billion combined largely into artificial intelligence this year, even as returns so far have lagged the pace of growth in the outlays.
Profitability Trends
"Investors right now are not forgiving about large investments without clear signal on return on invested capital," analysts at Morgan Stanley said.
Market Capitalization Insights
Below is a snapshot of how the companies fared in the December quarter:
CAPITAL EXPENDITURE
Amazon.com, once seen as a laggard in the AI race, is leading the charge with $200 billion reserved in spending. Alphabet is close behind with as much as $185 billion, while Meta has projected up to $135 billion.
CLOUD REVENUE
Google Cloud notched the fastest growth among the three major U.S. cloud providers in the reported quarter with a rise of 48%.
While the business is smaller than its major rivals, strong adoption of the latest Gemini model has led some analysts to say that Alphabet has taken the lead in the AI race.
Amazon Web Services - the largest cloud player - meanwhile posted a revenue growth of 24%, while Microsoft's Azure reported a 39% increase.
UNEVEN PROFIT
Rising expenses weighed on profit growth at Amazon and Meta in the quarter, while Microsoft reported its strongest profit growth in two years.
MARKET CAP GROWTH
Optimism about Gemini and Google's deal to power Apple's revamped Siri have also boosted Alphabet's share price, which has in recent months far outperformed its rivals.
(Reporting by Harshita Mary Varghese and Anhata Rooprai in Bengaluru; Editing by Sriraj Kalluvila)
Key Takeaways
- •Tech giants are increasing AI investments.
- •Cloud revenue is growing, led by Google Cloud.
- •Amazon leads in capital expenditure for AI.
- •Microsoft reports strong profit growth.
- •Alphabet's market cap boosted by AI advancements.
Frequently Asked Questions about Big Tech's quarter in four charts: AI splurge and cloud growth
1What is capital expenditure?
Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. It is often used for long-term investments.
2What is cloud revenue?
Cloud revenue is the income generated from cloud computing services, including storage, software, and infrastructure provided over the internet. It has become a significant revenue stream for tech companies.
3What is artificial intelligence?
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems. It includes learning, reasoning, and self-correction, and is increasingly used in various industries.
4What is market capitalization?
Market capitalization is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the share price by the total number of shares and is used to assess company size.
