2026.07: Aggregators and AI
A leaked projection reveals an unprecedented AI arms race is about to explode.
Deep Dive
A leaked analysis from Stratechery projects that the combined capital expenditures of Amazon, Google, and Meta will exceed $700 billion in 2026, a figure approaching two-thirds of the entire U.S. Department of Defense budget. This massive investment is primarily directed toward AI infrastructure and models. The report argues this spending is justified for network-effect giants like Google and Spotify, where AI personalization is a core, sustaining advantage for their platforms.
Why It Matters
This spending surge will accelerate AI capabilities and lock in dominance for the biggest tech platforms, reshaping the entire industry.