Big Tech's AI spending in Q3 2026: Amazon, Alphabet, Microsoft and Meta compared

How much did Amazon, Alphabet, Microsoft and Meta spend in Q3 2026?

In the quarter ended September 30, 2026, the four spent $201.9 billion on property and equipment. That is the one line all four companies report on their cash flow statements, which makes it the cleanest way to add them up. A year earlier the same four spent $97.3 billion, so the total rose about 108%.

The parts are rounded.

The companies do not split out AI spending. Alphabet's finance chief said the vast majority of its spending was technical infrastructure to support AI. Amazon's release says its rise in spending mainly reflects investment in AI. Microsoft said about three quarters of its spending was for short-lived assets, mainly chips. Meta said it is investing to support both its core business and its AI work. For where the money lands, see the U.S. AI data center pipeline.

Why do different headlines give different totals?

Because each company leads with a different measure. All the figures below are right for what they measure. The error is adding them as if they were one thing.

Two examples show the gap. Amazon's cash flow statement shows $77.3 billion of purchases, and its headline of $75.9 billion subtracts proceeds from sales and incentives. Microsoft's cash purchases were $39.4 billion, but its headline of $45.2 billion includes finance leases, which are leases that work like a loan.

Microsoft's measure also matters for comparisons over time. Microsoft said that from the start of its 2027 fiscal year it lengthens the life it assumes for data center buildings and expects more leases to be operating leases. Operating leases are not counted in capital expenditures, so its reported figure can fall without it building less.

What do the four expect to spend in 2026?

Here is the guidance each gave, as last stated.

Adding the four gives $720 billion at the low end and $740 billion at the top, using four different definitions. Only Alphabet and Meta give ranges, so the top figure assumes both land at the top of theirs. It is also guidance and not spending, and Microsoft's is a calendar-year number from a company with a June fiscal year.

None of the four put a dollar figure on 2027. Alphabet's finance chief said capital expenditure should increase significantly in 2027, with more detail on the fourth-quarter call. Amazon's quarterly report says it expects cash capital expenditures to increase meaningfully in 2027. Meta said it is still developing its plans and expects to keep investing aggressively. Microsoft said in July that its 2027 fiscal-year spending will grow, and expects more than $50 billion in its next quarter. Some headlines attach a dollar figure to Alphabet's 2027 spending, but it is not in the company's call transcript.

How is the spending being paid for?

Operating cash flow covers part of it. The companies also raised debt and sold shares. Free cash flow is operating cash flow minus capital spending, and each company defines it a little differently.

The filings also show what each raised in 2026.

• Amazon: proceeds from long-term debt were $115.1 billion in the nine months, including $48.1 billion in the third quarter. That covers dollar, euro, Swiss franc, Canadian dollar and sterling notes and a $17.5 billion term loan drawn in September. It also has a secured loan facility of up to about $80.0 billion that it can draw from 2027. That is capacity, not debt raised.
• Alphabet: $45.0 billion of dollar notes and $35.8 billion of foreign-currency notes in 2026, for $80.8 billion at face value. It also raised equity: $20.5 billion net from a public offering in June, a $10.0 billion private placement to a Berkshire Hathaway affiliate, and $19.0 billion net from mandatory convertible preferred stock. Alphabet says the proceeds are for general corporate purposes, including capital expenditures.
• Meta: $25.0 billion of notes in May. After the quarter ended it sold $15.0 billion of notes on November 5 and, on October 26, agreed to sell mandatory convertible preferred stock and Class A shares through forward sale agreements. The preferred offering closed on October 29.
• Microsoft: no new debt in the quarter, and it repaid $4.85 billion.

What have they committed to beyond what they have spent?

A great deal. Each quarterly report lists leases that have been signed but have not started, and long-term purchase commitments. The categories differ, so the rows below are not comparable line by line, and Spezia does not total them across companies.

Alphabet's finance chief said these are maximum contractual amounts, and that many agreements have variable pricing and volume flexibility that could lower the spend. Meta's filing does not say whether its two figures overlap, so they should not be added without saying so.

What is on the other side of the ledger?

Revenue that customers have contracted to pay later, called backlog or remaining performance obligations, and cloud growth. These are what the spending is meant to serve.

Backlog is not the same as cash, and the three companies define it differently. Alphabet widened its definition in the first quarter of 2026 to include contracts of a year or less. Amazon's quarterly report mentions the expanded OpenAI and Anthropic commitments in its note on performance obligations. It does not say how much of the $578 billion they make up. For how those commitments work, see Anthropic's IPO filing, explained and OpenAI's round and compute deals.

The chip supplier's view comes from NVIDIA, which reported data center revenue of $89.0 billion, up 117% from a year earlier, for the quarter ended July 26, 2026. Its next report is on November 17, 2026.

How do you read a capex number?

Five checks prevent most errors.

1. Which definition? Cash purchases, purchases net of proceeds and spending including finance leases are three different numbers.
2. Which calendar? Microsoft's fiscal year ends in June, and NVIDIA's ends in January.
3. Spent or planned? Guidance, commitments and leases not yet started are intentions, not spending.
4. What changed in the accounting? A longer asset life or a shift from finance to operating leases can lower a reported figure.
5. Who is the buyer? A cloud contract signed by an AI lab is revenue for the cloud company and a cost commitment for the lab.

Spezia is a research product, not an adviser. Nothing here is investment advice.