Big Tech companies are doubling down on AI investments despite growing concerns about an emerging AI bubble. Google revealed it now expects to spend between $91 billion and $93 billion on capital expenditures this year—up from $85 billion in July and $85 billion in April—citing strong customer demand and expanding AI opportunities. CEO Sundar Pichai emphasized that the spending reflects the company’s commitment to scaling infrastructure and innovation. Microsoft reported a sharp rise in capital expenditures, spending $34.9 billion in the quarter, up from $24.2 billion the previous quarter. CFO Amy Hood said demand for cloud services continues to outpace supply, and the company plans to spend more in 2026 than it did in 2025, with a major focus on acquiring GPUs and CPUs. Microsoft’s revenue rose 18% to nearly $78 billion. Meta also raised its 2025 capital expenditure guidance to $70 to $72 billion, up from $66 to $72 billion, with CFO Susan Li noting that 2026 will see even greater spending, driven largely by infrastructure needs. The company posted $51.2 billion in revenue, surpassing analysts’ expectations of $49.5 billion. Together, these companies—along with Amazon—are projected to spend around $320 billion on capital expenditures in 2025, a sum greater than Finland’s GDP and nearly matching ExxonMobil’s 2024 revenue. The scale of investment underscores the central role of AI in their long-term strategies. While some analysts warn of a potential bubble, others point to strong revenue growth as evidence of real demand. Gil Luria of DA Davidson acknowledges that the spending is largely justified by actual market needs. However, he flags concerning behaviors such as speculative borrowing and circular investments—like Nvidia investing in cloud provider CoreWeave—as signs of overheating. Despite the risks, Luria argues that Big Tech companies are insulated from the fallout. With vast customer bases and internal AI use cases, they can absorb the costs even if demand slows. The real danger lies with downstream providers like CoreWeave and Oracle, which may end up with excess capacity and no customers. Jacob Sonnenberg, a portfolio manager at Irving Investors, said the latest earnings confirmed what Nvidia CEO Jensen Huang had already signaled: AI spending is not just real—it’s accelerating. While the current trajectory is sustainable for now, he warns that investors are left uncertain about when a slowdown might occur. Recent data from Apptopia showing a plateau in OpenAI’s active user growth adds to the caution. Still, for now, Big Tech’s massive investments are backed by strong financial results, suggesting the AI boom may be more than just hype—though the long-term sustainability remains an open question.