Hyperscalers Increase AI Capex, Apple Cuts

In Q4 2024, Alphabet, Amazon, Meta and Microsoft sharply increased capital expenditures for data centers and AI infrastructure while Apple cut capex 19% year-over-year to $2.37 billion. Hyperscalers are guiding combined 2025 spending toward $300–350 billion, including Amazon’s roughly $100 billion plan, pressuring margins and free cash flow and raising investor concerns about ROI and overcapacity.