The world’s tech giants are continuing to splash out on artificial intelligence (AI) spending. Google parent Alphabet raised its forecast for the year to at least $91 billion, while Meta set a new target of $70 billion this year and next. Microsoft CEO Satya Nadella attributed the surge in demand to strong market conditions.
However, some experts caution that the boom may be unsustainable if companies are financing each other or spending beyond their means. Federal Reserve Chair Jerome Powell rejected the idea that lower interest rates would fuel an AI bubble.
Despite concerns, many believe AI is playing a crucial role in driving economic growth. Companies like Caterpillar saw significant sales increases, with sales of equipment for data center applications rising 33%. The AI sector is also boosting bottom lines and driving stock market records.
But there are questions about the impact on jobs. While AI is lifting businesses, it’s not yet creating new employment opportunities. Data centers, in particular, don’t require large staffing once they’re built.
The big picture shows that the AI economy is booming, with Nvidia passing $5 trillion in value and Caterpillar’s stock soaring. The question remains whether this circular funding model can be a problem or just a proven way of doing business.
(Note: I simplified the text by removing unnecessary words, phrases, and technical jargon to make it more accessible to a wider audience.)
Source: https://www.axios.com/2025/10/30/ai-capex-google-microsoft-meta