Big Tech pours $765 billion into AI as cash flow cools rapidly

Big Tech companies including Amazon, Alphabet, Meta, and Apple are facing growing financial pressure as they expand AI data centers and infrastructure.

Goldman Sachs estimates megacap AI spending at $765 billion this year and says it could approach $1.2 trillion by 2027.

Amazon raised its capital expenditure outlook to $220 billion, while Alphabet’s cash flow turned negative for the first time.

Meta and Apple also signaled pressure in earnings and guidance, with higher memory costs and low-cost AI competition from China adding strain.