Big Tech’s 2026 AI Agenda Revealed in Latest Infrastructure Investments

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Key points:

  • Major tech companies such as Microsoft, Amazon, and Google are investing heavily in compute infrastructure to meet the growing demand for AI.
  • The demand for AI is driving the need for greater computing power, with agentic AI and GenAI video being two of the main drivers.
  • Inference is becoming a critical component of AI, requiring faster and more powerful compute infrastructure to deliver quick and accurate results.

As a reporter covering the latest developments in the tech industry, I’ve been following the recent surge in investments in compute infrastructure by major tech companies. Some experts have been warning that the AI market is a bubble that’s about to burst, but a closer look at the numbers and trends suggests that this investment is driven by a real and growing demand for AI. Microsoft, for example, has signed a $17.4 billion deal with the Nebius Group to increase its GPU capacity, while Amazon is investing up to $50 billion to expand its AI and supercomputing capabilities.

The demand for AI is being driven by a range of factors, including the growing use of agentic AI and GenAI video. Agentic AI is a type of AI that can automate complex workflows, and it’s becoming increasingly popular among businesses looking to gain a competitive edge. GenAI video, on the other hand, is being used to generate high-quality video content, and it’s predicted that by 2027, more than 60% of all digital video will be AI-generated. Azure, Microsoft’s cloud computing platform, is also playing a crucial role in supporting these AI workloads.

The need for greater computing power is also being driven by the growing demand for inference, which is the process of using AI models to make predictions or take actions. Inference requires fast and powerful computing infrastructure, and companies like Nvidia are investing heavily in developing the necessary hardware and software to support it. Microsoft’s Azure Machine Learning platform is also being used to support inference workloads, providing businesses with a scalable and secure way to deploy their AI models.

According to recent research, the demand for data center capacity is expected to grow six-fold by 2035, with about 70% of that demand coming from AI workloads. This is driving a surge in investment in data centers, with companies like Alibaba and Google investing billions of dollars in new infrastructure. Microsoft’s Azure Data Center initiative is also part of this trend, providing businesses with a secure and scalable way to deploy their AI workloads.

While some experts may be warning of an AI bubble, the evidence suggests that the demand for AI is real and growing. Microsoft’s investments in Azure and AI research, for example, are driven by a desire to support the growing demand for AI and machine learning. As Dean Leitersdorf, CEO of Decart, said recently, "Robots are already using models like this to envision infinite possibilities, infinite outcomes. In the future, we’ll be able to train robots fully in generative simulations before they ever hit the ground. And when they hit the ground, they will use live visual intelligence to understand the world around them." This is just one example of how Microsoft and other tech companies are working together to support the growing demand for AI and machine learning.

As the demand for AI continues to grow, it’s likely that we’ll see even more investment in compute infrastructure. Microsoft’s Azure platform, for example, is well-positioned to support the growing demand for AI and machine learning, providing businesses with a scalable and secure way to deploy their AI workloads. With the Azure platform, businesses can quickly and easily deploy their AI models, without having to worry about the underlying infrastructure. This is just one example of how Microsoft is supporting the growing demand for AI, and it’s likely that we’ll see even more innovations in the future.

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