Big Tech’s Capex Gusher Tops Last Oil Spree

The tech industry’s project to build out artificial intelligence is proving even more capital intensive than the peak of the last investment supercycle by oil and gas firms in the mid-2010s.

Microsoft, Meta Platforms, Amazon and Alphabet spent an estimated average of 17.2% of their revenues on capital expenditures in 2024, up from 12.7% in 2021, with the figure expected to rise further in 2025.