US tech giants cut buybacks to fund AI infrastructure buildouts
Big US tech firms, think Microsoft, Alphabet, Amazon, Meta, and Oracle, have massively scaled back on buying their own shares this year.
Buybacks dropped from $81.8 billion to just $13.6 billion in the first nine months of 2026.
The main reason? These companies are pouring money into building out AI infrastructure, which has actually left them with a $14 billion cash flow deficit.
Tech spending $556.9B outpaces cash flow
Even though their operating cash flow jumped 29% to $542.9 billion, their spending on things like data centers and AI hardware doubled to $556.9 billion, outpacing their combined operating cash flow for the first time since 2011.
To keep up with investments and still give something back to shareholders, Amazon took on an extra $48.1 billion in debt, while Alphabet raised more than $41 billion through share sales and debt issuance.
Bottom line: tech giants are betting big on AI now, hoping it pays off later, even if it means less instant reward for investors today.