This year's projected capex ramp-up will all but wipe out free cash flow for Amazon, Google, and Meta, potentially forcing stock buyback cuts or more borrowing
Big tech's dramatic ramp-up in projected capital expenditures this year will all but wipe out free cash flow for Amazon, Google and Meta Platforms.
The Information Martin Peers
Related Coverage
- Tech AI spending may approach $700 billion this year, but the blow to cash raises red flags CNBC · Jennifer Elias
- Big Tech's AI Push Is Costing a Lot More Than the Moon Landing Wall Street Journal
- Chart of the Week: A diverging Magnificent Seven Financial Times · Hakyung Kim
- Cloud earnings bring capex clarity, concern and confusion SiliconANGLE · Dave Vellante
- If you are not all in with AI in 2026, consider this - the Big 4's AI capex spend will be 2.1% of GDP this year. … Neil Sweeney
- Big Tech groups race to fund unprecedented $660bn AI spending spree Financial Times · Tim Bradshaw
Discussion
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@amir
Amir Efrati
on x
https://www.theinformation.com/ ... @mvpeers
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r/technology
r
on reddit
Big Tech's ‘breathtaking’ $660bn spending spree reignites AI bubble fears
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@patrickmcgee_
Patrick McGee
on x
It's almost like - and hear me out - - Apple's $600bn pledge to “invest” in America is some combo of smoke, mirrors, and BS.
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@ranimolla
Rani Molla
on x
Sitting out the conversation on spending ungodly sums on data centers is lone Big Tech company Apple, whose capex actually *declined* last quarter https://sherwood.news/...
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@sambiddle.com
Sam Biddle
on bluesky
Well yeah their software is perfect, not much to spend on [embedded post]
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@parismarx.com
Paris Marx
on bluesky
how long until apple's decision not to chase the AI hype starts looking like a competitive advantage? [embedded post]
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@sherwood.news
@sherwood.news
on bluesky
One of these companies is not like the others. — https://sherwood.news/tech/apple-is- the-only-big-tech-company-whose-capex- declined-last-quarter/
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r/BlackboxAI_
r
on reddit
Big Tech sees over $1 trillion wiped from stocks as fears of AI bubble ignite sell-off
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@patrickgaley
Patrick Galey
on bluesky
So, worth pointing out that Google, Microsoft et al haven't actually “lost $900 bn” in a day. Because that money never actually existed. — It's the private debt they are torching to power their Rube Goldberg machines and call it tech. That's investor cash. That matters www.f…