The logo and lettering of online retailer Amazon can be seen on the façade of Amazon Germany's headquarters.
Amazon shares sunk more than 9% on Friday after the company's hefty spending forecast surprised investors who were already wary that the artificial intelligence boom is at risk of becoming a bubble.
Big Tech companies have seen more than $1 trillion wiped from their market cap over the past week, as fears over AI spending sparked a sell-off.
Microsoft , Nvidia , Oracle , Meta , Amazon and Alphabet all saw their shares fall in the week up to the market close on Thursday, as the companies' earnings reports signaled huge continued capital expenditure spending from hyperscalers.
In total $1.35 trillion has been wiped from their valuations, according to FactSet data.
Plans to funnel $660 billion into artificial intelligence this year were announced by Big Tech companies, the Financial Times reported, a figure higher than the gross domestic product of countries like the United Arab Emirates, Singapore and Israel.
Shares of companies developing hardware for the AI build-out will likely encounter continued volatility as "sentiment contagion takes hold," Paul Markham, investment director at GAM Investments, told CNBC.
"Questions over the extent of capex as a result of LLM build-outs, the eventual return on that, and the fear of eventual over-expansion of capacity will be persistent," he added.