Eric Siu breaks down the capex arms race between Meta, Microsoft, and Google. Their combined spending jumped from $17 billion to $118 billion by Q1 2024, driven almost entirely by AI infrastructure investments as each company races to avoid falling behind.
The Meta, Microsoft, and Alphabet arms race. The amount of money this chart is showing right now being spent by Microsoft, Meta, and Alphabet is breathtaking. A true arms race. So this is capital expenditures. You can see it just going higher and higher. Whoa, whoa, whoa, whoa, whoa. By the way, on the left side of this graph over here, the capital expenditures is about $17— I have to assume that's billion. You go all the way to the right side, Q1 of 2024, it's $118 billion. It just goes to show that these guys aren't slowing down their capital expenditures. A big chunk's going into AI, among other things. But, you know, when you're big, you don't want to lose your lead.
