Microsoft and Google keep pouring billions into AI expansion

Despite growing doubts over returns, tech giants continue to spend staggering sums on artificial intelligence — with Microsoft and Alphabet leading the latest investment wave.

Microsoft’s $7.9 billion UAE plan

Microsoft will pour nearly $8 billion into expanding AI and cloud infrastructure in the United Arab Emirates between 2026 and 2029.

A reality check from Microsoft’s president

President Brad Smith acknowledged that tech firms are “in a race to announce sky-high numbers,” but said the investments will benefit shareholders and the UAE alike.

Chips approved for export

Smith confirmed Microsoft was the first company under the current US administration to secure licenses to ship advanced GPUs to the UAE.

The Texas connection

Microsoft also signed a $9.7 billion, five-year deal with AI-cloud firm Iren Limited to build new liquid-cooled data centers in Childress, Texas.

Iren steps into the spotlight

Co-CEO Daniel Roberts called the deal proof that Iren has become a trusted global AI-cloud provider, with capacity for 200 megawatts of infrastructure.

Alphabet raises billions in Europe

Google’s parent company is issuing six euro-denominated bond tranches worth at least €3 billion to fund its expanding AI infrastructure.

A second wave of bond sales

In the US, Alphabet is floating another $15 billion in bonds — its second major sale this year after a €6.75 billion issue in spring.

Meta joins the rush

Facebook’s parent has also entered the race, raising $30 billion through bonds to finance its own AI build-out.

Spending despite skepticism

Analysts say the investment surge shows no sign of slowing, even as concerns grow that AI’s returns won’t justify its price tag.

Forrester’s warning

Research firm Forrester predicts large companies will soon scale back AI budgets as the gap widens between vendor promises and delivered value.

Build first, justify later

For now, Big Tech’s approach remains unchanged: keep spending to dominate the next wave of computing — and worry about profits once the dust settles.

This article is made and published by Asger Risom, who may have used AI in the preparation