Big Tech's $750B AI spending runs into slowing core businesses

According to a Bloomberg report on October 30, 2026, the advertising, consumer and retail businesses that fund the roughly $750 billion in AI spending by America’s largest technology companies are starting to slow, and in some cases are being cannibalized by the very AI technology those firms are betting on.

A follow-up report the same day, citing Bloomberg, tied the tension to earnings season. Earlier this week, Google parent Alphabet reported that search and other advertising revenue, which accounts for about half of total revenue, grew at its slowest pace in five quarters, yet the company kept its capital-expenditure outlook for the year at up to $205 billion. Amazon said Thursday that growth in both its e-commerce business and its advertising segment slowed in the previous quarter, while reiterating a capex plan of around $220 billion for this year. Microsoft and Meta have likewise maintained their prior spending guidance, though their results fell short of investor expectations. The reports describe a broad pattern in which slowing core businesses are financing enormous, still-accelerating AI commitments: the companies are said to be issuing debt, issuing stock and signing deals at unprecedented scale, with some agreements running into the tens of billions of dollars. The earnings releases were followed by share declines, underscoring the financial pressure and market scrutiny attached to the AI transition. Details of the new financing deals remain to be disclosed.