Big tech AI spending may outpace cash by 2027
Big tech giants like Microsoft, Amazon, Alphabet, Meta, and Oracle are pouring huge amounts of money into building out AI: think massive data centers and servers.
A new Reuters analysis says their total capital expenditures could outpace the cash they're bringing in by 2027.
It's a bold move that shows just how much they're betting on the future of AI, even if it squeezes their finances for now.
Microsoft and Amazon gain Oracle falls
Microsoft and Amazon are already seeing solid growth from their AI investments: Microsoft's AI business is pulling in $37 billion a year, and Amazon's AWS grew 28% in its first quarter.
But not everyone is winning: Oracle's stock has dropped 36% this year due to negative cash flow.
Meanwhile, Meta and Alphabet keep buying back shares for investors but might have to rethink buybacks if this heavy spending doesn't start paying off soon.
All eyes are now on Alphabet's earnings report to see if these big bets will deliver real returns.