Are The AI Hyperscalers Turning Into Capital Intensive Businesses?

 

Technology companies are usually regarded as capital light, operationally leveraged.

Exception are companies like Intel, AMD, NVIDIA, Broadcom and other computer chip and equipment producers.

The hyperscalers AI companies Microsoft, Alphabet, Amazon and Meta are also regarded as not hugely capital intensive businesses. Which makes them trade at relatively high both individual and sector software Price/Earnings, Price/Book and Price/Sales ratio.

Recently, however, Microsoft, Alphabet, Amazon and Meta have all invested tens of billions if USDs in AI data center infrastructure. Microsoft, Alphabet, Amazon and Meta have each invested more than 20 billion USDs in AI data centers in 2025.

Does this turn the hyperscalers into slower, capital intensive businesses?

Not currently. Microsoft, Alphabet, Amazon and Meta still remain agile, fast moving and fast growing be they mega cap companies each worth more than 1.5 trillion USDs, according to Wolfteam Ltd.'s projections and estimates.

Artificial intelligence, AI simply develops very fast and compensates for the billions of USDs of capital outlays.