Global artificial intelligence (AI) spending is projected to rise significantly in the coming years, with UBS estimating a 60% year-on-year increase in 2025, to $360 billion.<\/p>\n
The momentum is expected to continue in 2026, with a further 33% rise to $480 billion.<\/p>\n
However, the share of spending attributed to the Big 4 tech giants \u2014 Microsoft, Amazon, Alphabet, and Meta \u2014 is anticipated to decline, falling from 58% in 2025 to 52% in 2026.<\/p>\n
The report said “we expect global AI spend to increase by 60% y\/y in 2025 to reach $360 billion and 33% in 2026 to reach $480 billion… We expect the combined share of these companies as a percentage of AI spend to rise from less than 20% in 2023 to more than 40% in 2025”. <\/p>\n
It also highlighted that this broadening of AI spending across a more diverse set of players is a healthy development for the overall AI theme. A reduced concentration of investment among a few companies could eventually lead to less volatility in the market, the report said.<\/p>\n
Spending outside the Big 4 is expected to reach a robust $150 billion in 2025. A significant portion of this is projected to come from China, which is likely to account for 35% of the total spend outside the Big 4.<\/p>\n
According to UBS, the rise in China’s AI investments is being driven by the success of low-cost models such as DeepSeek, strong government support, and the growing use of AI in consumer-facing applications like e-commerce, social media, and advertising. <\/p>\n
The report mentioned that the Neocloud providers \u2014 companies offering specialized AI-integrated cloud services \u2014 are also emerging as a key segment, expected to capture around 25% of the non-Big 4 AI spending in 2025.<\/p>\n
The remaining spend is likely to come from other hyperscalers and enterprise or sovereign cloud providers, including players such as Oracle and Softbank.<\/p>\n
While UBS advises investors to continue monitoring guidance from the Big 4, the report emphasises that other AI-focused companies are now accelerating their investments and are crucial to the ongoing resilience of the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"
Global artificial intelligence (AI) spending is projected to rise significantly in the coming years, with UBS estimating a 60% year-on-year increase in 2025, to $360 billion. The momentum is expected to continue in 2026, with a further 33% rise to $480 billion. However, the share of spending attributed to the Big 4 tech giants \u2014 Microsoft, Amazon, Alphabet, and Meta \u2014 is anticipated to decline, falling from 58% in 2025 to 52% in 2026. The report said “we expect global AI spend to increase by 60% y\/y in 2025 to reach $360 billion and 33% in 2026 to reach $480 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-928097","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/928097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=928097"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/928097\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=928097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=928097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=928097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}