Big Tech Set to Pour $650B Into AI and Cloud Despite Trump’s Domestic Industry Agenda

Tech Giants to Pour $650B Into Digital Innovation, Ignoring Trump’s Push for U.S. Manufacturing

While President Donald Trump pushes for a U.S. manufacturing revival through aggressive tariffs and industrial policy, America’s largest tech firms are moving in the opposite direction—committing record sums to digital transformation.

The so-called Magnificent 7—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla—are set to invest a combined $650 billion in capital expenditures (capex) and research and development (R&D) in 2025, according to Lloyds Bank. That figure exceeds the entire annual public investment budget of the U.K. government.

Corporate America Bets on Bits Over Bricks

Despite the administration’s push for “bricks and mortar,” corporate spending is heavily tilted toward “bits”—software, semiconductors, data centers, and AI infrastructure. This divergence is reshaping how capital is deployed across the U.S. economy.

Total U.S. corporate spending on IT equipment and software has surged to $1.45 trillion, growing 13.6% year-over-year and now accounting for over 40% of total private fixed investment. In contrast, investment in traditional sectors has contracted, with non-IT capital investment down 4.9% in the second quarter, extending a three-quarter decline.

“Companies aren’t just reacting to tariffs or uncertainty—they’re chasing AI momentum,” said Nicholas Kennedy, FX strategist at Lloyds. “Fear of missing out is pushing firms to divert funds from legacy sectors into emerging technologies.”

The AI Effect: FOMO Drives Capital Reallocation

According to Kennedy, the fading impact of Biden-era infrastructure spending—particularly the CHIPS Act—has left a vacuum now being filled by AI-focused investment.

While AI’s long-term return remains unproven, it’s already reshaping strategic decisions. Companies are prioritizing cloud computing, model training, and tokenization over factory lines and physical plants.

“It’s not clear yet whether this spending will yield returns, but the shift is unmistakable—capital is flowing toward AI, software, and crypto infrastructure,” Kennedy noted.

Implications for Crypto and Digital Assets

This digital investment boom has had spillover effects in crypto markets, where assets like bitcoin and Nvidia shares—seen as proxies for AI and decentralized tech—have rallied significantly since late 2022.

Despite Trump’s pro-manufacturing rhetoric, his administration has proven favorable to crypto. Key policy wins in 2025 have included bipartisan regulatory frameworks for stablecoins and digital assets, along with strategic appointments to financial regulators that have boosted industry confidence.

Trump Media’s own $2 billion bitcoin treasury and options strategy further signal that parts of the administration view digital assets as aligned with U.S. financial leadership.

“Bits are clearly winning the capital race,” Kennedy said. “The future of corporate investment isn’t on the factory floor—it’s in server racks and algorithmic models.”