Cracks emerge in AI spending as Big Tech outlines $740B capex plans
Alphabet, Amazon, Meta and Microsoft have signaled plans for roughly $740 billion in capital expenditures this year—widely read as AI infrastructure spending—while investors reacted negatively amid falling free cash flow, rising debt, and market selloffs in chip and tech stocks. Alphabet, Amazon and Meta reported recent negative free cash flow (Alphabet −$9.1B in Q3, Amazon −$42.4B over 12 months, Meta −$2.1B in Q3), Microsoft remained positive ($18.6B), and raises of debt by major hyperscalers ($326B in 2026) and the compute needs of startups like Anthropic are heightening financing concerns.