The cash drain of tech companies due to AI spending puts Wall Street's patience to the test
The combined free cash flow of Amazon, Microsoft, Google and Meta turns negative, while maintaining capital spending plans of $745 billion this year.
Amazon, Microsoft, Google, and Meta are maintaining high capital expenditure plans of $745 billion this year, despite their combined free cash flow turning negative in the third quarter. The four tech giants' free cash flow totaled -$26.099 billion in Q3, with Amazon at -$33.456 billion and Meta registering its first negative balance since going public at -$2.120 billion.
The companies are investing heavily in data centers and artificial intelligence, with over $1.3 trillion in capital investments since early 2023. Despite market concerns, the companies insist that AI is already generating returns, citing growth in their cloud businesses.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
