Wall Street is growing uneasy as tech giants pour record sums into artificial intelligence infrastructure, Bloomberg writes. 

Alphabet, Meta and Microsoft spent a combined $78 billion on data centers and AI hardware last quarter—an 89% jump from last year. Microsoft alone posted $34.9 billion in capital spending, while Meta warned that next year’s outlays will grow “significantly faster.” 

The companies insist demand for AI remains insatiable, though analysts question whether an AI bubble may be forming. Google struck a more upbeat tone, reporting strong cloud growth and surging user adoption for its Gemini AI. 

But Meta’s heavy borrowing, $16 billion tax hit, and ongoing losses at Reality Labs spooked investors, sending its shares down 14%. On Monday, it was reported that Meta secured a $27 billion financing partnership with Blue Owl Capital to build the $10 billion Hyperion project in Richland Parish, the company’s largest data center. Under the agreement, Blue Owl will hold the majority stake while Meta retains about 20% equity. 

Even so, leaders like Mark Zuckerberg say the bigger risk lies in underinvesting. With Amazon and Apple yet to report, investors are watching closely to see if AI’s rapid buildout can sustain its momentum.

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