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Moody’s finds Chinese AI firms narrowing the physical compute gapSCMP reported that Moody’s Ratings sees US hyperscalers spending far more on AI infrastructure, but a smaller gap in physical compute because Chinese buildouts are cheaper and benefit from policy incentives and lower-cost green power. The report projects Chinese technology companies’ capital expenditure will rise from about US$65 billion in 2025 to roughly US$140 billion in 2026 and US$165 billion in 2027.→UBS sees $4.1 trillion of hyperscaler AI infrastructure spending through 2028The forecast says Amazon, Google and Microsoft could spend about 102% of cloud revenue on capital expenditure in 2026, with Google the largest projected spender in the cited breakdown. The estimate is a forecast rather than realised spend and depends on continued AI demand, power availability and model economics.→Big Tech's AI spending has not yet broken returns on invested capitalAn Axios analysis found that Alphabet and Amazon's return on invested capital had risen, Microsoft's was broadly steady and Meta's had declined. It cautioned that off-balance-sheet obligations may make reported returns look more favourable than underlying economics.→Big Tech's AI spending has not yet broken returns on invested capitalAxios's analysis of recent results found that Alphabet and Amazon's return on invested capital has risen, Microsoft's has been broadly steady and Meta's has declined. The analysis also notes that off-balance-sheet obligations may make the picture less favourable than reported figures suggest.→