The five largest U.S. cloud providers have accelerated their AI buildout plans, adding roughly $750 billion to their combined investment forecasts for 2026 and 2027. Alphabet and Amazon lead the ramp, with combined projections for the period reaching $507 billion and $505 billion, respectively, according to Goldman Sachs strategists. Estimates for Microsoft, Meta and Oracle also rose to $373 billion, $333 billion and $174 billion, bringing the two-year total to $1.89 trillion, a 66% increase since the start of 2026.

This spending surge creates a monetization gap, as the group requires roughly $308 billion in annual AI revenue to break even on the capex. Current AI revenues are estimated at $183 billion, with two-thirds provided by Anthropic and OpenAI, according to analyst Ed Zitron. Goldman warns that AI investment may transition from an earnings tailwind in 2026 to a marginal drag by 2028 as equipment depreciation charges rise. The risk is further compounded by high customer concentration, with the top 10% of AI firms accounting for 99.5% of model-serving spend.