Goldman Sachs sees Big Tech spending $1.2 trillion on AI infrastructure in 2027

Goldman Sachs expects Amazon, Alphabet, Microsoft, Oracle and Meta to spend a combined $1.2 trillion on AI infrastructure in 2027, over 50% above roughly $800 billion this year and above Wall Street’s $1.1 trillion consensus. Goldman calls it the largest investment cycle versus GDP since 19th-century railroads; growth slows from nearly 100% in 2026 to 54% in 2027, payback needs about $300 billion in annual AI revenue, spending outpaces operations so debt may rise, and power, labor and memory-chip bottlenecks could delay projects.