Warren Presses Big Tech Over Billions in AI-Related Tax Breaks

Sen. Elizabeth Warren is demanding answers from Amazon, Alphabet, Meta and Microsoft over billions of dollars in federal tax breaks that lawmakers say are benefiting the companies as they expand their artificial intelligence and data-center investments.

Sen. Elizabeth Warren is seeking answers from Amazon, Alphabet, Meta and Microsoft about tax breaks tied to AI and data-center investments. [Photo: Microsoft Facebook]

The four companies reported substantial second-quarter 2026 revenue.

Amazon posted $200.6 billion, Alphabet reported $119.8 billion, Microsoft recorded $90 billion, including $59.3 billion in Microsoft Cloud revenue, and Meta reported $60.8 billion.

The figures underscore the scale of the companies' businesses as they invest heavily in AI infrastructure.

Warren, however, is focusing on their federal tax bills. In a video posted on X, she highlighted Amazon, saying its federal income-tax payments fell by nearly $8 billion between fiscal years 2024 and 2025.

Warren said the company earned higher profits while paying substantially less in federal income taxes.

Meta's federal income-tax payment fell to $2.8 billion in 2025 from $9.6 billion in 2024, according to figures cited by Warren and other lawmakers.

The company's pretax income, however, increased during the period.

The Institute on Taxation and Economic Policy (ITEP) separately estimated that Microsoft received $18.7 billion in federal tax breaks in 2025, while Alphabet received $18.4 billion.

ITEP estimated Amazon's tax breaks at $17.4 billion and Meta's at $13.7 billion.

Warren and five other senators sent letters to the CEOs of Amazon, Meta, Alphabet and Microsoft seeking details about the tax breaks associated with AI and data-center investments and asking about lobbying related to the One Big Beautiful Bill Act.

The lawmakers requested responses by Oct. 11.

The companies' tax benefits include accelerated depreciation and other provisions that can reduce taxable income. ITEP has argued that the 2025 tax law significantly increased the value of such deductions for companies making large AI infrastructure investments.