By Rich Duprey
Publication Date: 2026-08-11 14:01:00
Big Tech is about to spend $725 billion on AI infrastructure in 2026 alone — Amazon (NASDAQ:AMZN | AMZN Price Prediction), Alphabet (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META) combined, up 77% from $410 billion just last year. That kind of spending has become the defining feature of this market cycle, and most bubble warnings focus on the usual suspects: stretched valuations, circular vendor financing, or a handful of chatbot apps carrying too much investor hope.
IBM (NYSE:IBM) CEO Arvind Krishna isn’t worried about any of that. He appeared on Nicolai Tangen’s In Good Company podcast in May and laid out a different argument — one built on kilowatts, dollars, and simple division. It’s worth considering, because Krishna isn’t a short-seller. He’s a 35-year IBM veteran with a direct stake in how this plays out, and his math points somewhere specific.
The Gigawatt Math That Doesn’t Add Up
Krishna’s case starts with AI data center…