The year 2026 is becoming important for the global tech industry not because of a new gadget, but because of how much money companies are spending on artificial intelligence (AI). According to Bloomberg, Google, Amazon, Meta and Microsoft together are expected to spend around $650 billion on AI this year. This amount is almost equal to what India plans to spend on running the entire country in its 2026-27 budget.
A Comparison
India’s total government spending for 2026-27 is estimated at about $670 billion. This money is meant for everything defence, healthcare, education, infrastructure, welfare schemes and more for a population of nearly 1.5 billion people.
In comparison, just four technology companies are planning to spend nearly the same amount on one area alone: artificial intelligence. While government budgets and company spending plans can change, the comparison clearly shows how serious the AI race has become.
Amazon is expected to spend around $200 billion, mainly to strengthen its cloud and AI services through AWS. Google’s parent company Alphabet may spend between $175 billion and $185 billion. Meta and Microsoft are also planning huge investments, with spending estimated between $115 billion and $135 billion each.
Where Is All This Money Going?
Most of this money will be used to build AI infrastructure. This includes large data centres, powerful computer chips, advanced servers and networking systems. These are needed to train and run advanced AI models like chatbots, image generators and enterprise AI tools.
Tech leaders believe that companies that control AI infrastructure will control the future of technology. Amazon CEO Andy Jassy has said that AI will change almost every customer experience we see today.
Why This Matters Beyond Technology?
This massive spending is not just about tech competition. It shows how powerful large companies have become and how much influence they can have on the global economy. Such investments can create jobs, change supply chains and shape future government policies.
However, there are also concerns. Heavy spending by private companies does not always mean benefits for everyone. Critics worry that while companies invest billions in AI, many countries still struggle to spend enough on education, healthcare and basic infrastructure.
As the AI race continues, the real question may not be who builds the smartest technology but who truly gains from it.
Read more on The Financial Express
