The a16z Show · Wednesday, September 30, 2026
The five largest hyperscalers (Alphabet, Amazon, Meta, Microsoft, and Oracle) are projected to spend over $1 trillion annually on capital expenditures starting in 2027. This massive investment is driven by the continuously increasing demand for compute power, which still outstrips supply.
“So the five largest hyperscalers, Alphabet, Amazon, Meta, Microsoft, and Oracle, their cap-ex in 2026 is about $780 billion, up from $416 billion in 2025.”
“And all expectations point to them spending over $1 trillion annually from 2027.”
“Successive forecasts for the five largest hyperscalers' cap-ex have moved sharply higher in pretty short succession.”