Big Tech’s multi-billion dollar AI bets are still on track as Mag 7 giants report earnings
The four Mag 7 giants reported quarterly results on Wednesday, showing that they are still on track to spend multi-billion on AI. Here is what it means for crypto.
What to know:
- Microsoft, Alphabet, Meta, Amazon all reported Q1 earnings after the bell on Wednesday.
- The four companies are expected to spend a combined $650 billion on AI infrastructure in 2026, the largest capital spending commitment in corporate history.
- AI-linked bitcoin mining stocks IREN, TeraWulf and Cipher Digital fell slightly in after-hours trading following the prints.
Previously, an analysis by Bridgewater Associates flagged that the four companies are expected to spend roughly $650 billion together on AI infrastructure in 2026. While most of them didn’t break out their AI spending in their latest earnings, they seem on track to continue their spending spree in the sector.
The investment has significant implications for the digital asset sector, particularly for bitcoin miners, who are increasingly pivoting away from mining toward hosting computers for AI as part of their revenue diversification strategy. The bitcoin miners already have data centers ready and powered up to host a massive amount of machines that are needed for AI computing. Facing a margin squeeze from lower bitcoin prices and increased competition, miners have started lending their data centers to AI firms to diversify their revenue streams.
