Investment firm Citi said it sees the big tech hyperscalers — a group that has traditionally included Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Google (NASDAQ:GOOG) (GOOGL) and Microsoft (NASDAQ:MSFT) — spending as much as $2.8T on artificial intelligence infrastructure by 2029.
“… [We’re] entering a period of accelerating growth in both investment and implementation of AI driven by improvements in technology, enterprise adoption, and infrastructure expansion,” Citi analysts wrote in a note to clients. “We did not expect the expression of that acceleration to be compressed into a two-week period involving the flurry of announced investments, partnerships, and products that we have seen. Our conversations with CIOs and CTOs reflect a similar increase in urgency around adoption at the enterprise level. Based on this, we are raising our 2026E forecast for AI capex across the hyperscalers from $420B to $490B and through 2029 from $2.3T to $2.8T.”
The analysts added that the infrastructure providers across the semiconductor, hardware and other infrastructure providers should all benefit from “this accelerating pace of investment,” along with the hyperscalers themselves.
