Corporate AI Spending Rises as ROI and Energy Impacts Spark Debate

Corporate America is pouring money into artificial intelligence even as evidence mounts that adoption, returns and environmental impacts are uneven, according to multiple industry and government reports released this year. Companies including hyperscalers and major tech firms have dramatically increased capital spending on AI infrastructure, while surveys and studies show a mixed picture on whether that spending is translating into widespread, sustained use or tangible business benefits.

Market signals of an AI boom are strong. Mentions of AI in S&P 500 earnings calls hit an all time high of 287 in the second quarter of 2025, a fourfold rise from the 10 year average, and major cloud providers and platforms have committed tens of billions to AI projects. One report notes Meta pledged about $14.3 billion to Scale AI and launched a research hub while signing a multibillion dollar cloud deal with Google. Microsoft has announced large cloud agreements, and Wall Street estimates combined capital expenditure by Alphabet, Meta, Amazon and Microsoft could approach $500 billion next year. That surge has been a windfall for chipmaker Nvidia, which controls more than 90 percent of the GPU...