The four tech giants, Microsoft, Alphabet, Meta, and Amazon, have reported their quarterly earnings, indicating they are still committed to their massive artificial intelligence spending plans. With a combined market cap of approximately $12 trillion, these companies are expected to spend around $650 billion on AI infrastructure in 2026.
While the exact AI spending figures were not disclosed in their latest earnings reports, the companies seem poised to continue their significant investments in the sector. This has major implications for the digital asset sector, particularly for bitcoin miners who are diversifying their revenue streams by hosting AI computers.
The miners already have the necessary infrastructure in place, with data centers ready to support the large number of machines required for AI computing. As a result, AI-linked bitcoin mining stocks such as IREN, TeraWulf, and Cipher Digital have been affected, with Microsoft, Alphabet, Meta, and Amazon also experiencing fluctuations in their stock prices after the earnings reports. The next major test of market sentiment will come when chipmaker Nvidia reports its earnings on May 20. In their earnings reports, Microsoft, Alphabet, Meta, and Amazon highlighted the importance of AI in driving their growth and investment strategies.
Microsoft reported a significant increase in its AI business, with revenue of $37 billion, up 123% year-over-year. Alphabet pointed to AI as a core driver of growth, with Google Cloud revenue rising 63% to $20 billion.
Amazon noted a surge in infrastructure spending, driven primarily by investments in artificial intelligence, while Meta raised its full-year outlook to $125-145 billion, reflecting higher component pricing and additional data center costs to support future capacity.