Wall Street deepens its decline as tech stocks and cryptocurrencies retreat. Major U.S. tech companies—Alphabet, Amazon, Meta, and Microsoft—plan to invest up to $650 billion in 2026 in their race to lead artificial intelligence. This historic expenditure will be allocated to building new data centers and acquiring essential equipment, such as AI chips, network infrastructure, and backup generators. According to Bloomberg data, the projected capital spending by these companies for this year would set a record for any individual company in the last decade. The scale of these investments is only comparable to the telecommunications bubble of the 1990s or large infrastructure projects like 19th-century rail networks or 20th-century interstate highways in the U.S. The estimated 60% increase from the previous year reflects the global acceleration in data center construction, facilities that require enormous amounts of energy and resources. This boom has created tensions in the power supply, concerns about price impacts, and conflicts with local communities over energy and water use. Additionally, the weight of these investments by a small group of tech giants could distort overall economic indicators. Gil Luria, an analyst at DA Davidson, notes that these companies see AI computing as a market where "the winner takes all," and none are willing to fall behind. Meta recently announced that its annual capital expenditure could reach $135 billion, an 87% jump. Microsoft reported a 66% increase in its quarterly capital spending, with projections of up to $105 billion for the fiscal year. Alphabet surprised investors by announcing a plan of up to $185 billion, while Amazon exceeded that figure with a forecast of $200 billion for 2026, causing its stock to drop after the announcement. In contrast, 21 of the largest industrial and service companies in the U.S., including automakers, defense, energy, and distribution, will collectively invest $180 billion by 2026, according to Bloomberg. Each tech giant is betting on different strategies to monetize these investments, but all share the premise that tools like ChatGPT and other generative AIs will become increasingly relevant in daily and work life. Developing these models requires thousands of high-cost chips and complex infrastructure, explaining the volume of spending. These investments are transforming companies that, until recently, had limited physical presence. For example, Meta and Alphabet have shifted from prioritizing offices and campuses to allocating most of their capital to tech infrastructure. In 2023, Meta invested more in physical assets than in research and development for the first time in six years, accumulating $176 billion in property and equipment, five times more than in 2019. However, doubts remain about the ability of all these companies to execute their ambitious plans. Competition for resources such as skilled labor, construction materials, and Nvidia chips is already creating bottlenecks, according to Luria. The financial sustainability of these investments is also in question. While tech companies have ample cash reserves, their willingness to invest in AI tests both their balance sheets and investors' patience. Tomasz Tunguz, an investor at Theory Ventures, warns that these cycles of massive investment do not always end well, although in the short term they act as powerful economic engines. The rising capital expenditure has generated unease among investors, who have begun to show caution despite the strength of these companies' core businesses. Steve Lucas, CEO of Boomi, points out that the uncertainty lies not in AI's potential but in the pace and economic viability of its adoption.