Amazon, Meta, and Alphabet report plunging tax bills thanks to AI investment and new rules in Washington

The build-out of artificial quality information centers on with business-friendly provisions successful President Trump's "One Big Beautiful Bill" are combining to marque 2025 a banner taxation twelvemonth for Big Tech.

Tax bills person dropped for 3 companies astatine the halfway of the ongoing AI build-out, acknowledgment to caller concern satellite deductions enacted past twelvemonth by Republicans for things similar depreciation and probe and improvement costs.

Some of the caller provisions connection deferrals, meaning taxation bills whitethorn beryllium higher down the road, but the changes are acceptable to adhd billions to these companies' bottommost lines for now.

So acold this year, Amazon (AMZN), Meta Platforms (META), and Alphabet (GOOG) person filed yearly reports to the authorities — and each reported important drops successful what they expect to wage successful US national income taxes.

Amazon's taxation measure dropped from astir $9 cardinal successful 2024 to $1.2 cardinal successful 2025. Likewise, Meta reported a year-over-year driblet from astir $9.6 cardinal successful 2024 to $2.8 cardinal successful 2025.

The yearly study from Alphabet, meanwhile, reported a tally that combined US national and authorities taxation totals and showed a driblet from astir $21.1 cardinal successful 2024 to $13.8 cardinal successful 2025.

These dropping taxation bills for 2025 besides came arsenic each 3 companies study profits are connected the rise.

Amazon's home profits jumped to astir $90 cardinal successful 2025 — an implicit 40% summation from 2024. Alphabet's home profits jumped implicit 32% to $143.6 billion, portion Meta came successful astatine $79.6 billion, a 20% jump.

Some look to beryllium preparing for disapproval — dropping taxation bills is an contented that has agelong inflamed anti-tech sentiments.

Amazon got unwelcome announcement successful 2018 erstwhile it paid $0 successful national taxes. This time, it has offered a lengthy connection to explicate that it is simply playing by the caller rules.

"Last twelvemonth Congress made changes to the taxation codification to promote greater concern successful the American economy, its innovation, and its workers ... our taxation measure this twelvemonth reflects those changes," said the company.

The institution said its varied 2025 investments included "Artificial Intelligence (AI) innovation" and totaled much than $340 cardinal successful the US past year. It was besides speedy to enactment that galore taxes deferred this twelvemonth volition yet beryllium paid, and reiterated that "this argumentation yet doesn't alteration the magnitude of taxation we pay."

Meta CFO Susan Li added successful her company's caller net telephone that Meta is seeing "substantial currency taxation savings from the caller US taxation laws, fixed the important investments that we're making successful infrastructure and R&D."