Big Tech Reaps Tax Cuts; AI Spending Surge Driven by Trump Law (GOOGL, META, AMZN, TSLA)

Big Tech firms are realizing substantial tax reductions under the Trump-era tax law, providing immediate capital for expansion. This year, Google, Meta, Amazon, and Tesla are seeing significant cuts, with Amazon’s 2025 federal tax bill dropping to $1.2B from $9B in 2024 as $89B in profits are deferred. The effective tax rate for Amazon was 1.4% in 2025. Overall, about $51B in profits from these four companies will be untaxed this year. The law restores bonus depreciation, allowing full expensing of domestic R&D and capital spending. This provision is critical for AI investments: servers, networking, and cooling equipment qualify for immediate write-offs, improving cash flow. Meta reported $5B in tax savings from the change and plans $135B in capital expenditures, with AI facilities forming a major portion. The policy is expected to fuel AI spending and long-term growth for Big Tech.