The global investments in artificial intelligence (AI) infrastructure by the four largest tech companies - Microsoft, Amazon, Google, and Meta - have reached approximately $725 billion in 2026. This represents a 77% increase compared to the previous year. According to Hisham Khalaf Allah, an international expert in innovation and digital transformation, this significant investment is reshaping the global investment landscape at rates that surpass the budgets of entire countries.
Meta dominates the smart glasses market with around 85% market share globally, having sold over 7 million units of its "Ray-Ban Meta" model in 2025 alone. However, the company's Reality Labs division, responsible for developing smart glasses, has incurred losses of over $85 billion since the end of 2020, including $19.2 billion in 2025. Khalaf Allah notes that while Meta leads the market technically, it is experiencing significant financial losses.
Despite the substantial investments and losses, Meta's core applications, such as Facebook and Instagram, generated operating profits of around $102 billion in 2025. This is sufficient to fund the losses of its augmented reality and smart glasses division more than five times over. Khalaf Allah emphasizes that investors view Meta's future investments as a "self-funded bet" on its existing and profitable business.
The number of daily users of AI-powered smart glasses has tripled in just one year, making this category one of the fastest-growing in the history of consumer electronics. Mark Zuckerberg previously highlighted this rapid growth. Meanwhile, Google's parent company, Alphabet, saw its stock decline by over 7% following the announcement of its significant investment plans, due to concerns about the return on investment.
Google plans to spend between $175 billion and $185 billion in capital expenditures in 2026, more than double its 2025 spending and over three times its 2024 expenditure of $52.5 billion. Khalaf Allah notes that financial markets are focused on measuring the expected return on investment compared to the size of the expenditure.
The Arab region has a notable presence in specialized exhibitions like GITEX in Dubai, with partnerships and projects underway in leading countries such as the UAE, Saudi Arabia, and Kuwait. Khalaf Allah highlights that the investment gap between the region and Silicon Valley is significant, and the challenge lies in identifying areas of the value chain where Arab countries can compete intelligently.
Khalaf Allah advises Arab investors and businessmen to focus on the operational and service platforms behind AI technologies, rather than just the devices themselves. He emphasizes that substantial investment alone does not convince investors; a strong current income source is necessary to fund future bets. He concludes that any ambitious Arab tech project must determine its funding source and ensure it has the necessary financial readiness and patience to compete in a race that will take years to yield results.
Key points
- Global AI investments by top tech firms have reached $725 billion in 2026.
- Meta dominates the smart glasses market with 85% market share.
- Arab region has opportunities for partnerships and investments in AI.
