America’s biggest tech companies are pouring money into artificial intelligence at a scale that rivals entire countries’ economies. Amazon, Alphabet, Microsoft, and Meta are investing a combined $364 billion in capital expenditures during their 2025 fiscal years. That’s up from $325 billion in 2024, with most of the increase going toward AI infrastructure like data centers and specialized computer chips.
Tech giants are spending $364 billion on AI in 2025, rivaling the economic scale of entire nations.
The numbers are staggering when broken down by company. Amazon’s annual spending is approaching $120 billion, while Meta has surged to $70 billion. Microsoft and Google have each boosted their investments toward the $80 to $90 billion range. Together, these tech giants increased their AI-related spending by an estimated $125 billion year-over-year.
This massive investment is creating ripple effects across the entire U.S. economy. The direct $364 billion investment is projected to support approximately $923 billion in economic output and sustain 2.7 million jobs. About 620,000 of those jobs come directly from the tech companies themselves, while the rest emerge from supply chains and related industries. Higher investment often influences borrowing costs and returns across markets, affecting decisions about capital allocation and savings interest rates.
AI-related expenditures contributed an estimated 40% of U.S. GDP growth over the past year, meaning AI investments contributed more to economic growth than all consumer spending combined.
The financial impact extends beyond job creation. These investments are generating $297 billion in labor income, contributing $469 billion to GDP, and producing $105 billion in tax revenues. Industries seeing the biggest gains include electronic computer manufacturing, construction of commercial structures, and wholesale trade in professional equipment. The $291 billion in server investments alone generate an additional $21 billion in forward linkages, supporting industries like data processing, hosting services, and broadcast equipment manufacturing.
The compensation landscape is also transforming dramatically. Meta’s “Checkpoint” program now allows standout employees to earn bonuses worth up to 300% of their target pay. Google has shifted more bonuses and equity toward top performers, while Amazon enables long-term high achievers to earn above traditional pay caps. Senior individual contributors can now match or exceed manager salaries without becoming people managers themselves. This shift reflects a broader movement away from punishing bottom performers toward concentrating rewards at the top.
Goldman Sachs estimates this AI-driven transformation will add 0.4 percentage points to U.S. GDP growth over the coming decade.
