Shareholders balked at the sector’s gargantuan capex plans – more than the gross domestic product (GDP) of Israel – which overshadowed strong revenue growth at the companies’ cloud arms. He pointed to a 24 per cent growth in revenue at Amazon Web Services as evidence investment was starting to pay off. “This shifts Apple’s AI capex to a pay-as-you-go model,” with the iPhone maker outsourcing most of the underlying infrastructure costs to Google. The partnership “absolutely” explained some of Google’s increased capex plans for 2026, Hutcheson added. After more than three years of being asked to stomach escalating capex, investors are looking for an imminent end to spending based on faith in AI.

Source: The Irish Times February 06, 2026 16:55 UTC