Amazon, Google, Microsoft Are Printing Profits But Burning Cash: What’s Really Happening?
America’s biggest tech companies — Amazon, Google, Meta, Microsoft, and Oracle — are seeing soaring profits, but their free cash flows are collapsing.The reason? They are spending a staggering $800 billion this year on AI data centres and infrastructure — nearly 40% of their combined revenues.This massive capital expenditure has now surpassed historic spending booms like the shale oil rush and the dotcom telecom buildout. While accounting rules spread costs over years (keeping profits high), the cash is leaving the companies immediately.Big Tech is betting everything on explosive future AI demand, raising hundreds of billions in bonds and signing trillions in future revenue deals.
#openai #apple #chapgpt #claudeai #claude #gemini #google #samaltman
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