Google and Amazon Plan to Blow $400B on AI Data Centers Nobody Asked For
KEY POINTS
- •Ali Barr reported that AI threatens software’s classic business model by potentially reducing subscription demand and raising software costs.
- •Google and Amazon plan nearly $400 billion in capital expenditure on AI infrastructure in 2026, pushing total investments toward $1 trillion.
- •Industry experts like Andrej Karpathy and Aditya Agarwal highlight 2026 as a disruptive year, predicting the end of manual coding and slimmer profit margins.
In 2026, Google and Amazon—who apparently missed the memo on 'more AI equals more profits'—are throwing nearly $400 billion at AI-capable data centers, aiming to leapfrog into a $1 trillion revenue future. Ali Barr, Business Insider's AI whisperer, explained that traditional software’s fat profits might deflate since AI workflows could replace subscriptions and cause those glorious margins to vanish like your last paycheck. Meanwhile, coding legend Aditya Agarwal mourns that 'vibe coding' guru Andrej Karpathy dubbed AI's takeover, confessing on X in 2026 we’ll never write code by hand again. That’s progress, or a prophecy of eternal keyboard unemployment.
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Big Tech is betting $400B that customers have trillion-dollar wallets for AI, while we all wonder if they just bought a velvet rope to nowhere.
Investing a trillion to sell AI tools we’re not sure anyone can afford? Sounds like dating apps for CEOs.
The software industry's saying farewell to fat margins and hand coding, which explains why even AI is sobbing quietly in the server room.
Source: Businessinsider | Published: 2/8/2026 | Author: Jamie Heller
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