Amazon, Alphabet, Microsoft, Oracle and Meta are currently investing roughly $800 billion in their technological infrastructure this year. Goldman Sachs strategists forecast these outlays will increase by 54% to $1.2 trillion in 2027, exceeding the $1.1 trillion consensus estimated by other Wall Street analysts.

The bank estimates that the five largest US cloud providers need approximately $300 billion in annual AI revenue to break even on these investments. Future growth in capital expenditure could be limited by rising financing costs and constraints on physical infrastructure.