AI Revenue Hits $25 Billion, Topping Depreciation for Meta, Alphabet, Microsoft

What happened

A Bloomberg newsletter from June 25, 2026 reports that combined AI revenue at Meta, Alphabet, and Microsoft has reached $25 billion in annualized run-rate, for the first time exceeding accounting depreciation on AI infrastructure for these companies.

Context and impact

The trio's surging AI capex exceeds $452 billion for 2026, raising tough questions on returns. This milestone advances the J-curve debate one step, but analysts remain skeptical — they point out that depreciation so far reflects only a fraction of total AI capex, which is amortized over 6-15 years.

Details

• Combined 2026 AI capex across the 4 hyperscalers exceeds $452B
• Microsoft generates $37B annualized AI revenue against $97B in spending
• First quarter where accounting net AI margin is not negative for hyperscalers
• Analysts warn: J-curve still requires 3-5 years patience