Connect with us

Tech

Amazon and Google are winning the AI capex race — but what’s the prize?

Sometimes, it can seem like the AI industry is racing to see who can spend the most money on data centers. Whoever builds the most data centers will have the most compute, the thinking goes, and thus be able to build the best AI products, which will guarantee victory in the years to come. There are limits to this way of thinking — traditionally, businesses eventually succeed by making more money and spending less — but it’s proven remarkably persuasive for large tech companies.

If that is the game, Amazon does seem to be winning.

The company announced in its earnings on Thursday that it projects $200 billion in capital expenditures throughout 2026, across “AI, chips, robotics, and low earth orbit satellites.” That’s up from the $131.8 billion in capex in 2025. It’s tempting to attribute the whole capex budget to AI. But unlike most of its competitors, Amazon has a significant physical plant, some of which is being converted for use by expensive robots, so the non-AI expenses aren’t so easy to wave away.

Google is close behind. In its earnings on Wednesday, the company projected between $175 billion and $185 billion in capital expenditures for 2026, up from $91.4 billion the previous year. It’s significantly more than the company spent on fixed assets last year, and significantly more than most of its competitors are spending.

Meta, which reported last week, projected $115 billion to $135 billion in capex spending for 2026, while Oracle (once the poster child for AI infrastructure) projects a measly $50 billion. Microsoft doesn’t have an official projection for 2026 yet, but the most recent quarterly figure was $37.5 billion, which pencils out to roughly $150 billion, assuming it keeps up. It’s a notable increase, and one that has led to investor pressure on CEO Satya Nadella — but it still puts the company in third place.

From within the tech world, the logic here is simple. The revolutionary potential of AI is going to turn high-end compute into the scarce resource of the future, and only companies that control their own supply will survive. But while Google, Amazon, Microsoft, Meta, Oracle, and others are frantically prepping for the compute desert of the future, their investors aren’t convinced. Each company saw its stock price plummet as investors balked at the hundreds of billions of dollars being committed, and companies with higher spends tended to drop more.

Crucially, this isn’t just a problem for companies like Meta that haven’t figured out their AI product strategy yet. It’s everyone — even companies like Microsoft and Amazon with a robust cloud business and a straightforward take on how to make money in the AI era. The numbers are simply too high for investor comfort.

Techcrunch event

Boston, MA
|
June 23, 2026

Investor sentiment isn’t everything — and in this case, it may not do much to change the industry’s mind. If you believe AI is about to change everything (and the argument is pretty compelling at this point), you’d be a fool to change course just because Wall Street got jumpy. But going forward, Big Tech companies will be under a lot of pressure to downplay how expensive their AI ambitions really are.

source

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Doss raises $55M for AI inventory management that plugs into ERP

Enterprise resource planning (ERP) systems are often described as a company’s “central brain” because the software connects different departments — including finance, HR, and inventory — into a single database where everyone shares the same information.

In recent years, a new crop of AI-powered ERP startups, such as Rillet and Campfire, has emerged hoping to replace legacy offerings like NetSuite. These companies claim that traditional ERPs are clunky, expensive, and time-consuming to implement.

However, according to Doss co-founder and CEO Wiley Jones, many new AI ERPs lack robust inventory management, the process of ensuring that the data on physical goods remains synced with the accounting ledger.

Doss claims to solve this by providing an AI-native inventory management layer that integrates with existing accounting systems, whether traditional ERPs or ones built by AI-based startups.

On Tuesday, Doss announced that it raised a $55 million Series B co-led by Madrona and Premji Invest, with participation from Intuit Ventures. Other new and existing inventors in the round include Theory Ventures, General Catalyst, Contrary Capital, and Greyhound Capital.

Doss, founded in 2022, originally focused on a core accounting product similar to those offered by AI-native startups like Rillet and Campfire. But last year, the startup decided instead of competing with these companies, “we would rather partner with them, and play a different game,” Jones told TechCrunch.

Jones explained that AI-native ERP companies manage accounts receivable, accounts payable, and other finance functions, but most don’t offer procurement and inventory management that integrates with accounting workflows.

Techcrunch event

San Francisco, CA
|
October 13-15, 2026

“We’re building a lot of the traceability for the supply chain, but through the lens of plugging into a finance and accounting partner,” Jones said.

The company’s main partners include Rillet and Campfire. Many clients also use Doss in conjuction with Intuit’s QuickBooks.

“The reason that they work with us is that [physical goods management] is not something that they’re likely going to build as a core competency without putting in a lot of energy and effort,” Jones said.

Doss’ core customer base consists of mid-market consumer brands, typically generating between $20 million and $250 million in top-line revenue. One such customer is Verve Coffee Roasters, a high-end specialty coffee brand.

The startup sees itself as competing with traditional ERPs. But these players are not sitting ideal in the age of AI, either. NetSuite, for instance, has recently introduced its updated AI ERP. It also competes with other agentic procurement startups such as Didero.

While Jones admits that selling two ERP systems, one for accounting and another for inventory management like Doss, “is a hard sell,” he says that legacy ERPs are so hard to implement that many customers are choosing to have two newer, AI-powered systems.

“I think it’s going to be a very intense fight inside of mid-market that ultimately will be determined by whoever rebuilds their architecture to be most legible and usable for agents,” Jones said.

Editor’s Note: The story corrected the list of Doss’ partners.

source

Continue Reading

Tech

Crunchyroll confirms data breach after hacker claims unauthorized access

Anime streaming service Crunchyroll has confirmed a data breach involving customer service ticket information following an incident with a third-party vendor, after a hacker claimed to have accessed user data and internal systems.

The streaming site, which Sony acquired from AT&T in 2020 for $1.18 billion, operates as a joint venture between U.S.-based Sony Pictures Entertainment and Japan-based Aniplex. Crunchyroll has more than 2,000 titles in over 12 languages and serves 15 million subscribers worldwide, per its website.

Reports of a threat actor claiming access to Crunchyroll user data surfaced online this week, with a hacker alleging that they obtained data about millions of users.

Crunchyroll said it is investigating the claims.

“Our investigation is ongoing, and we continue to work with leading cybersecurity experts,” the company said in a statement to TechCrunch, adding that it has not identified evidence of ongoing unauthorized access.

Separately, materials shared with TechCrunch by a cybersecurity-focused account, International Cyber Digest, indicate the attacker may have gained access to Crunchyroll’s Zendesk support system. Screenshots we have seen appear to show the company’s internal Slack messages and stolen support data, apparently stolen by hacking an employee at Telus Digital, an outsourcing giant that handles customer support for Crunchyroll. The hacker allegedly stole customer support ticket data until early 2025, at which point their access was revoked.

The cybersecurity account said the hack was separate from a recent breach affecting Telus Digital, which the company confirmed last week.

Crunchyroll did not respond to a follow-up question about whether the third-party vendor relates to its support partner, Telus Digital.

Telus Digital did not respond to requests for comments.

The hacker told BleepingComputer they had downloaded about eight million support ticket records from Crunchyroll’s systems, including roughly 6.8 million unique email addresses, though the claims have not been independently verified. The hacker also told the publication they gained access on March 12 after compromising an Okta single sign-on account belonging to a Crunchyroll support agent.

source

Continue Reading

Tech

BKR Capital raises $14.5M (so far) to invest in Black founders

Canada’s BKR Capital announced Monday that its Fund II has closed CA$20 million (around $14.5 million), bringing it closer to its CA$50 million target.

This fund is looking to back “high-growth technology companies led by founders from the Black community, building solutions for the future of work, living, and global connectivity,” managing partner Lise Birikundavyi told TechCrunch. The firm is mainly looking at Canada but is open to backing select companies globally. The average check size will be between $250,000 and $1.5 million, she said.

Birikundavyi said that almost 70% of the Black population in Canada is first- or second-generation immigrants, “resulting in founders who build globally from day one, unlocking early access to international markets and creating a structural advantage in scaling.”

Though many U.S. firms have shied away from openly advertising a mission that could be perceived as diversity, equity, and inclusion (DEI), Birikundavyi said her Toronto-based fund doesn’t share those exact fears. What’s happening in Canada is less of a DEI rollback and more of a reframing, she said, where investors are “prioritizing discussion on performance,” even though “the underlying opportunity remains unchanged.”

She added, “Expanding access to overlooked founders continues to surface high-quality deals, making this less about DEI and more about arbitrage investing.” She believes investors in Canada still see “inclusive investment” as good for the ecosystem and full of potentially lucrative business opportunities.

The firm’s thesis is rooted in the belief that “overlooked markets and diverse lived experiences can unlock outsized venture opportunities,” Birikundavyi said. The firm launched in 2021 and raised $22 million for its Fund I (which Birikundavyi said is performing better than at least 75% of the other funds launched around the same time). She said BKR Capital hopes to make its final close for Fund II in December and invest in 25 companies.

Techcrunch event

San Francisco, CA
|
October 13-15, 2026

source

Continue Reading