Billionaire investor Bill Ackman is sending a clear message to Wall Street: stop worrying about the massive amounts of money being spent on artificial intelligence. As the leader of Pershing Square Capital Management, Ackman has recently stepped up to defend the “Big Tech” firms that many analysts are currently criticizing. While some people fear that companies like Meta, Alphabet, and Amazon are wasting money on a “cash bonfire,” Ackman believes these investments are the smartest moves they can make.
In his 2026 annual letter to shareholders, Ackman took a firm stance against the skeptics. He argues that the billions of dollars going into data centers and high-powered chips are not just an expensive hobby, but a necessary step to meet the explosive demand for AI services.
“Applaud Rather Than Boo”
The centerpiece of Ackman’s defense is a simple piece of advice for investors. He suggests that when a trusted management team decides to spend big because their customers want more of their products, it should be seen as a sign of health, not a reason for panic.
“When a business you own, managed by a management team you trust, announces a large increase in capital spending due to increased demand for its products or services, you should be applauding rather than booing,” Ackman wrote in his annual letter.
He points out that the market often reacts negatively to these announcements because they look at the short-term cost. However, Ackman views these costs as foundational. By building the infrastructure now, these companies are making sure they don’t get left behind in the most important technological race of the decade.
The Case for “The Three”
Ackman’s hedge fund has put its money where its mouth is. Pershing Square has focused its portfolio on three major tech giants that he calls “The Three”: Alphabet, Amazon, and Meta. Together, these companies make up over half of his fund’s invested assets.
Meta Platforms
Perhaps his most talked-about bet is on Meta. The company has shared plans to spend between $115 billion and $135 billion in 2026 alone. While that number is staggering, Ackman describes the stock as “deeply discounted.” He believes the market is underestimating how much AI will boost Meta’s advertising business. By using AI to better target ads, Meta is already seeing higher engagement and better results for advertisers.
Amazon and Alphabet
Ackman’s confidence extends to the other pillars of the cloud. Amazon Web Services (AWS) and Google Cloud are the backbones of the modern internet. As businesses everywhere try to integrate AI into their own operations, they have to use these cloud platforms. Ackman argues that if these companies didn’t spend the money to expand, they would be handing their future profits over to their competitors.
Strong Balance Sheets as a Shield
One of the most common fears is that this level of spending will hurt the financial stability of these tech giants. Ackman pushes back on this idea, reminding investors that these are some of the wealthiest companies in history.
“The Three have the financial wherewithal to comfortably make these investments,” Ackman noted.
Unlike the dot-com bubble of the late 1990s, where many companies spent money they didn’t have, today’s leaders are generating massive amounts of cash from their core businesses. Alphabet’s search ads, Amazon’s retail and cloud divisions, and Meta’s social media apps are “cash cows” that can easily fund the next generation of tech.
The Risk of Staying Still
From Ackman’s perspective, the real risk isn’t spending too much, but spending too little. In the fast-moving world of AI, the first companies to build the best models and the biggest data centers will likely own the market for years to come.
He acknowledges that there might be some volatility in stock prices in the short term. However, he maintains that long-term value is built through bold decisions. For Ackman, the “AI infrastructure cycle” is still in its early stages. He believes that the current sell-offs in tech stocks are simply providing a “bargain” for investors who have the patience to see the project through.
A Broad Economic View
Ackman is also optimistic about the wider U.S. economy in 2026. He points to several factors that could help these tech investments pay off even faster, including:
Infrastructure Projects: Over $1.2 trillion in government-backed projects.
Pro-Business Policies: Incentives that encourage companies to grow and merge.
Deregulation: Efforts to make it easier for businesses to operate without excessive red tape.
In this environment, he believes that the “superintelligence” these companies are building will eventually become a core part of daily life and a massive driver of profits.
The billionaire’s stance serves as a reminder that investing often requires looking past the “noise” of daily market jitters. While the headlines may focus on the scary size of the checks being written, Ackman sees those checks as a down payment on a very profitable future. For those following his lead, the strategy is simple: trust the management teams that have built global empires and understand that the AI revolution is only just beginning.
