Big Tech's AI Spending Boom Shows Cracks as Debt and Cash Flow Concerns Grow

Big Tech's massive AI infrastructure spending is facing growing investor skepticism as companies report negative cash flow and mounting debt, causing significant stock market declines. Alphabet, Amazon, Meta, and Microsoft plan over $740 billion in capital expenditures this year. Alphabet reported negative free cash flow of $9.1 billion in Q3, while Amazon showed $42.4 billion negative over 12 months. Meta also burned cash, though Microsoft maintained positive free cash flow of $18.6 billion. The four companies raised $326 billion in debt in 2026, triple last year's amount. AI features like Google's AI Mode are slowing search ad growth, and the market turmoil may complicate Anthropic's upcoming IPO.