Tech companies are spending an unprecedented $700 billion this year on AI data centers. Nvidia’s Jensen Huang says we’re not anywhere near the peak

Fortune

by Alexei Oreskovic

February 26, 2026

AI-Generated Deep Dive Summary

Tech companies are ramping up their investments in AI infrastructure at an unprecedented pace, with spending expected to reach nearly $700 billion this year alone. Nvidia’s CEO, Jensen Huang, emphasized during a recent earnings call that this level of investment is far from reaching its peak. He argued that the demand for AI computing power, driven by emerging technologies like agentic AI and future developments in physical AI integration, will only continue to grow. The article highlights how major hyperscalers—tech giants such as Google and Amazon—are leading this spending spree, with some planning to double their capital expenditures (capex) annually. For instance, Meta has budgeted up to $135 billion for capex this year, while Google is set to spend as much as $185 billion. Nvidia, a key supplier of AI chips to these companies, reported a 73% revenue increase in the final quarter of 2025, driven by soaring demand for its GPUs. Huang’s comments suggest a long-term vision for sustained growth in AI infrastructure spending. He reasoned that the world’s need for computational power is exponentially increasing due to advancements in AI applications, such as those seen in agentic AI tools like OpenAI’s recent developments. This shift, he believes, will require trillions of dollars in investments over the coming years. The article raises critical questions about the sustainability of such massive spending. With hyperscalers already outpacing their cash flow and relying on debt to finance these projects, the long-term viability of this trend remains uncertain. However, Huang’s confident stance suggests that the industry is just beginning to tap into the potential of AI, with applications in robotics, manufacturing, and beyond poised to drive continued demand. For businesses, this underscores the importance of staying attuned to the rapidly evolving AI landscape. The implications for tech investments, market growth, and economic trends will likely shape industries across the globe for years to come.

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Originally published on Fortune on 2/26/2026