Tech Titans to Pour $650B Into AI and Digital Infrastructure, Defying Trump’s Manufacturing Push
Despite President Donald Trump’s push to reignite American manufacturing through tariffs and industrial policy, the largest U.S. tech companies are moving in a different direction—pouring capital into AI, cloud computing, and software.
The so-called “Magnificent 7”—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—are expected to collectively invest $650 billion in capital expenditures and R&D in 2025, according to Lloyds Bank. That figure surpasses the U.K. government’s total annual public investment, highlighting how heavily U.S. corporate spending continues to favor “bits” over “bricks.”
Capital Flows Favor Tech
Despite growing political support for U.S.-based manufacturing, private capital is overwhelmingly flowing toward digital infrastructure. Corporate investment in IT equipment and software has surged this year, now accounting for 6.1% of GDP, while non-IT private fixed investment has declined for three consecutive quarters.
Lloyds strategist Nicholas Kennedy noted that a growing “FOMO” effect surrounding artificial intelligence is pushing companies to shift resources toward emerging technologies.
“There’s a reallocation happening. Firms are diverting capital from traditional sectors to stay ahead in the AI race,” said Kennedy.
Spending on IT and software reached $1.45 trillion this year—a 13.6% increase from 2024—now comprising over 40% of total U.S. private fixed investment. By contrast, investment in non-tech sectors shrank by 4.9% in the second quarter.
AI Momentum and Crypto Correlations
This digital investment surge is closely tied to the continued boom in AI-related stocks and digital assets. Both bitcoin and Nvidia—often viewed as AI’s bellwether—have staged massive rallies since bottoming in late 2022 after the launch of ChatGPT.
The redirection of capital toward high-growth tech also aligns with a more favorable crypto policy environment under the Trump administration. Recent bipartisan legislation has provided clearer regulatory oversight for stablecoins and digital assets. Trump-appointed officials at the SEC and CFTC have signaled a more crypto-friendly posture.
Trump Media and Technology Group further reinforced this trend with the disclosure of a $2 billion bitcoin treasury and a $300 million options strategy centered on BTC in its recent earnings report.
“This isn’t just a pivot—it’s a full-scale capital migration,” Kennedy said. “And the message is clear: the economy’s future is being built in code, not concrete.”
