Big Tech Companies Plan to Increase Spending on Artificial Intelligence

What Happened?

Google, Meta, and Microsoft announced they plan to spend billions more on artificial intelligence (AI). The increase will be on top of already record-setting expenditures, with a total of six hundred billion in AI spending expected for 2026. Alphabet’s Chief Financial Officer said, ‘The investments we’re making in AI are delivering strong growth, and we expect our 2027 capital expenditures to significantly increase compared to 2026.’

Microsoft’s Chief Financial Officer also said they expect to increase AI spending in 2027 to levels that are higher than those of 2026. Alphabet’s stock rose seven percent following their announcement, while Meta’s stock decreased by six percent.

Why it Matters

Tech companies have already been spending record amounts on AI infrastructure, such as massive data centers, and the new round of investments indicates they plan to continue betting on a future where AI plays a prominent role in the economy and society.

American companies are not alone in planning for an AI economy. Many of China’s new automobiles are designed around an AI core, which treats AI as integral to those cars’ systems, not just as additional features…

Google just lost a $100 billion antitrust case. Here's who benefits.

A federal judge just ruled that Google illegally monopolized the online advertising market.

The DOJ wants a breakup.

If it happens, billions of dollars in digital ad spend will need somewhere new to go.

That's a problem for Google. But it's a tailwind for platforms that already sit between brands and consumers.

Platforms like Mode Mobile.

Mode built a software layer called EarnOS that pays users for everyday phone activity — browsing, music, games, charging. Brands pay Mode for the engagement. Mode shares the revenue with users.

It's a closed loop. And it works without Google's ad infrastructure.

$115M+ in revenue. $11.8M EBITDA in 2025. 490M+ users across 170 countries. Monthly profitability since April 2025.

Deloitte ranked them the #1 fastest-growing software company in North America. 32,481% over three years.

They've reserved $MODE on the Nasdaq.

Pre-IPO shares are still $0.50. Up to 20% bonus for early investors.

The ad economy is getting reshuffled. Mode is already positioned on the other side of it.*

Get the details here.

For investors, the key question is when can returns on the massive AI investment be expected. Alphabet’s financial reports indicate they are already seeing returns on their AI investment, and Microsoft is as well. Progress has been a bit slower for Meta in the AI realm, and the six percent drop in Meta stock following their announced plan to increase AI spending reflects concern from their investors. 

Where is new AI technology making the most inroads? Retail sales are one example. Retailers saw an eight-hundred percent increase in the number of orders placed through AI platforms in 2025 compared to 2024. Nearly 1.5 billion people are estimated to be using AI platforms at least once a week, representing one-sixth of the entire human population.

AI-generated content is also increasing online, which has contributed to a vast proliferation of authentic-looking but artificial video and audio content. Some of that content has been described as ‘slopaganda,’ a fusion of AI-slop and propaganda. The impact of AI-generated video and imagery can be seen by the explosion of fake videos posted during the Iran War, which depicted hundreds of incidents that never happened. 

As AI is embraced by more segments of the economy, a wide variety of industries, businesses, and governments will probably be able to utilize new capabilities while facing novel risks as well. The growing investments by big tech companies suggest the world is well on its way to creating and sustaining an AI-dominated economy.

How it Affects You

The nature of work, social interactions, and our ability to understand events happening in the world around us will likely be changed by the growth of AI. While companies like Meta focus on delivering experiences, Microsoft and Alphabet will likely continue to pursue newer and better AI services for their clients.

*Disclaimer: Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

Mode cumulative revenue includes full year revenue of businesses acquired in 2025.

Mode 2025 EBITDA includes full year EBITDA of businesses acquired in 2025.