The five giants increased investment in AI on the same day. Is this refueling in the air or the end of the war?

The five giants increased investment in AI on the same day. Is this refueling in the air or the end of the war?

On July 22, local time, from OpenAI, Anthropic, When AI comes to Google, many overseas technology giants have launched investment plans one after another within a day, investing heavily in AI. First, Google, which has attracted much attention, handed over its second quarter financial report.

Many data in the financial report were eye-catching and exceeded market expectations. The company announced that it would raise the full-year capital expenditure range for 2026 to US$195 billion-205 billion, and clearly emphasized that the scale of investment in 2027 will be further expanded.

OpenAI has raised its computing power spending plan by 2030 from US$600 billion to US$750 billion, and plans to invest US$20 billion to build a Anthropic and AMD signed a major chip and investment agreement.

Anthropic will purchase up to 2GW of AMD's latest generation chip Instinct MI450 starting in the first half of 2027, and AMD will invest up to US$5 billion in Anthropic. Increased presence in Europe and expanded cooperation with French AI startup Mistral AI.

Will provide billions of dollars to support the latter's construction of GPUs in Europe , and fully integrate its core AI models into product systems such as Azure and Copilot. AI begins further expansion . It was revealed that it has inspected multiple sites in Texas and plans to lay the foundation for at least one large data center.

▌Is it aerial refueling or is it the end of a strong crossbow? In the past two years, during every U.S. stock earnings season, AI capital expenditures have been one of the key areas of concern for the market.

Now that the new round of financial report disclosure period has just begun, Google has proven its determination to invest in AI with an unexpected expenditure plan. The large expenditures of leading companies such as OpenAI and Anthropic further prove that the Silicon Valley giant has not yet stepped on the brakes on AI investment.

However, despite the impressive results and the optimistic statements made by management in the conference call, Google still fell by more than 4% after the market closed - the core reason is cash flow. its Free cash flow in the second quarter was -$5.86 billion, significantly lower than market expectations.

This is also the first time Alphabet has negative free cash flow in a quarter since its listing.

According to media analysis based on LSEG’s consensus expected data, according to current development trends, by 2027, including Microsoft, Google, For technology giants, including Apple, total capital expenditures are expected to exceed the free cash flow they generate.

Annual operating cash flow of these companies is expected to increase by approximately $340 billion in 2027 compared with 2025, but capital expenditures are expected to increase by approximately $534 billion; this means that for every $1 of additional cash flow, approximately $1.57 of additional investment will be required to invest in construction.

“Investors are underestimating how AI is fundamentally changing the business models of big tech companies,” said Shay Boloor, chief market strategist at Futurum Equities. The economic benefits of business increasingly depend on huge investment in physical infrastructure.

" David Russell, head of global market strategy at TradeStation, said, “If capital expenditures are burning cash, then earnings growth may not be enough to justify these investments. The purpose of a business is to make money, not spend money. "

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