AI FOMO Drives 12-Month Web-Scale Capex to $340B, Surpassing Telco Market

The "Webscale Market Tracker, 1Q25: AI FOMO Pushes 12 Month Capex To $340B, Passing Telco Market" report, recently added to ResearchAndMarkets.com’s offerings, highlights the rapid expansion and record-breaking investments in the AI sector. In the first quarter of 2025, the 22 companies tracked in the Webscale Tracker, including the new entrant CoreWeave, reported a total revenue of $652 billion, marking a 9.2% increase year-over-year. These tech giants also spent a staggering $97 billion on capital expenditures (capex), a 67.2% surge compared to the same period last year. Their research and development (R&D) investments reached $84 billion, showing a 12.2% growth, while they maintained $635 billion in cash reserves, a slight decrease of 3.6%. Despite this, their debt levels rose to $560 billion, up 1.3% from the previous year. A significant driver of this capex increase is what the report terms "AI FOMO" (fear of missing out). This phenomenon has led to a 12-month capital expenditure total of $340 billion in the AI sector alone, surpassing the telco market. This substantial investment underscores the intense competition among major tech companies to stay at the forefront of AI innovation, as firms like Google, Meta, and others race to develop cutting-edge AI technologies. The report indicates that big tech players are not only investing heavily but also expanding their infrastructure to support these ambitious AI projects. This trend is expected to continue as the demand for advanced AI solutions grows, driven by applications in various sectors such as healthcare, finance, and consumer technology. The financial commitment to AI highlights its strategic importance and the potential it holds for transforming industries and driving future revenue streams.