New Delhi [India], May 5 : Global artificial intelligence (AI) spending is projected to rise significantly in the coming years, with UBS estimating a 60 per cent year-on-year increase in 2025, to USD 360 billion.
The momentum is expected to continue in 2026, with a further 33 per cent rise to USD 480 billion.
However, the share of spending attributed to the Big 4 tech giants Microsoft, Amazon, Alphabet, and Meta is anticipated to decline, falling from 58 per cent in 2025 to 52 per cent in 2026.
The report said "we expect global AI spend to increase by 60 per cent y/y in 2025 to reach USD 360bn and 33 per cent in 2026 to reach USD 480bn...We expect the combined share of these companies as a percentage of AI spend to rise from less than 20 per cent in 2023 to more than 40 per cent in 2025".
It also highlighted that this broadening of AI spending across a more diverse set of players is a healthy development for the overall AI theme. A reduced concentration of investment among a few companies could eventually lead to less volatility in the market, the report said.
Spending outside the Big 4 is expected to reach a robust USD 150 billion in 2025. A significant portion of this is projected to come from China, which is likely to account for 35 per cent of the total spend outside the Big 4.
According to UBS, the rise in China's AI investments is being driven by the success of low-cost models such as DeepSeek, strong government support, and the growing use of AI in consumer-facing applications like e-commerce, social media, and advertising.
The report mentioned that the Neocloud providerscompanies offering specialized AI-integrated cloud servicesare also emerging as a key segment, expected to capture around 25 per cent of the non-Big 4 AI spending in 2025.
The remaining spend is likely to come from other hyperscalers and enterprise or sovereign cloud providers, including players such as Oracle and Softbank.
While UBS advises investors to continue monitoring guidance from the Big 4, the report emphasizes that other AI-focused companies are now accelerating their investments and are crucial to the ongoing resilience of the sector.
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