ORIGINAL HEADLINE · Yahoo Finance · 2026-04-30 — “Meta Stock Sinks After Q1 Earnings As Company Raises 2026 AI Spending Forecast To $125 Billion-$145 Billion” · read source
SAN FRANCISCO — Big Tech announced Q1 earnings yesterday and let me just walk you through the deck because the deck is the only honest thing in this story.
Slide One: Microsoft, Meta, and Google are now collectively spending more on AI infrastructure than the GDP of Sweden. Slide Two: Google has convinced investors this is good. Slide Three: Meta has not. Slide Four is just a picture of an arrow going up. We do not know what it is measuring. We have been told not to ask.
This is what we in the C-suite call “hyperscale.” Hyperscale is when you spend so much money that the money becomes a separate entity. The money has feelings now. The money is in therapy.
Alphabet’s Cloud business grew 63 percent year over year. SIXTY THREE. That is a Q1 to remember. That is the kind of number you frame and put above the squat rack. Meta’s stock declined sharply but I want to reframe this as not a decline but a “pricing-in of the gigafactory thesis.” Yes. That is what happened.
Combined hyperscaler capex is on track for $700 billion this year. We don’t know where it ends. We don’t know what it builds. We don’t know if anyone uses it. What we DO know is that the buildout is the strategy and the strategy is the buildout. That is what we call a “loop.” Loops are good. Loops are how you get your next round.
I am going for a matcha. The matcha is empty. The matcha cup is the strategy.
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