Goldman sees Big Tech spending $1.2 trillion on AI infrastructure in 2027
The forecast tops Wall Street consensus by roughly a tenth, and spending now exceeds operating cash flow, making revenue the key question.
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According to Bloomberg, Goldman Sachs strategist Ryan Hammond projects that Amazon, Alphabet, Microsoft, Oracle and Meta will spend a combined $1.2 trillion on AI infrastructure in 2027.
That is more than 50 percent above the roughly $800 billion projected for this year, and above Wall Street's consensus of $1.1 trillion. Goldman says that measured against GDP, it would be the biggest investment cycle since railroad construction in the 19th century.
Growth is slowing, though: from nearly 100 percent in 2026 to 54 percent in 2027 and 12 percent in 2028. Goldman also notes that spending now exceeds what the companies generate from operations, meaning more debt financing; recouping the outlays would require about $300 billion a year in AI revenue, and bottlenecks in power, labor and memory chips could slow the pace further.