Global Hyperscale Cloud Firms' AI Capital Expenditure to Hit $1 Trillion for First Time in 2027

A latest report from BofA Securities shows that global hyperscale cloud firms' AI capital expenditure will exceed $1 trillion for the first time in 2027, equivalent to the GDP of the world's 15th largest economy. In 2026, this expenditure reached $800 billion, up 67% year-on-year, with an average daily spend of nearly $2.2 billion.

Google, Microsoft, Amazon, and Meta will invest over $315 billion in 2026, mainly in AI infrastructure like GPU chips and data centers. McKinsey reports that every $1 invested in AI yields $3 in return, and computing power determines model competitiveness, forcing enterprises to keep spending.

Nvidia is the biggest winner, with data center revenue up 200%; Qualcomm and AMD are also challenging. China's Alibaba Cloud, Tencent Cloud are catching up, with domestic GPU alternatives like Cambricon making progress, and models like DeepSeek V4 taking a low-cost route.