6 Hyperscalers Driving the AI Revolution Are Projected to Spend $1.3 Trillion on Capex in 2027. Only 1 Is Forecast to Have Positive Free Cash Flow.

Six major hyperscalers that are spearheading the AI revolution are forecasted to invest $1.3 trillion in capital expenditures (capex) by 2027, according to a report from S&P Global. Among these six companies, only Microsoft is anticipated to maintain positive free cash flow (FCF) in the following year. The other five entities included in the report are Alphabet, Amazon, Meta Platforms, Oracle, and SpaceX (Space Exploration Technologies).

Together, these companies have already allocated $470 billion to capex in 2025, with projections for $870 billion this year and an expected $1.3 trillion next year. This represents a significant increase of roughly 50% from the current levels. While most CEOs of these companies anticipate robust capex growth for 2027, concerns have arisen about the mounting debt these tech giants are accumulating due to this unprecedented spending.

Microsoft appears to have a strategic advantage, as it is projected to have significantly higher free cash flow compared to its competitors and is one of only two companies with an AAA credit rating from S&P Global.