Amazon, Microsoft, and Google's parent Alphabet plan significant increases in capital spending as they compete for dominant shares in the global cloud market. The companies' investment in computing infrastructure was boosted to a combined $42bn for the three months to September, marking a 20% increase from the same period last year. This increasing focus on capital-intensive AI-related cloud technologies could lead to squeezed profit margins in the long run while providing thrust to the growth of generative AI applications.