Big Tech AI CAPEX Surges to $725.1B in 2026, Up 4.9x Since 2023; Financial Runway Extends 2-4 Years

According to KB Securities and Samsung Securities, the five largest hyperscalers (Alphabet, Microsoft, Amazon, Meta, and Oracle) are projected to spend $725.1 billion on artificial intelligence capital expenditures in 2026, a 4.9-fold increase from $148.1 billion in 2023. The surge reflects growing inference demand and mounting memory costs as companies compete in generative AI deployment. However, as these firms increasingly turn to corporate debt issuance to fund expansion—with total bond issuance reaching $194.1 billion as of July 2026, up from $108.4 billion in 2025—concerns about credit risk have emerged, particularly for Oracle.

Securities analysts note that excluding Oracle, hyperscalers maintain strong financial positions. Samsung Securities estimates Microsoft retains 4.0 years of financial runway before credit pressures materialize, followed by Alphabet (4.9 years), Meta (3.9 years), and Amazon (3.1 years), based on current EBITDA-to-debt ratios and debt issuance rates. Analysts project AI-related CAPEX growth to moderate beginning in 2027, as earlier investments transition into revenue generation, thereby easing capital expenditure burdens.