Tech giants raise AI infrastructure spending as investors worry about cash flow and returns

Cracks are emerging in the AI spending boom

Alphabet, Amazon, Meta and Microsoft plan more than $740 billion in capital spending this year. Investors are growing more concerned about the cost of AI infrastructure, negative free cash flow and the return on that investment.

Why it matters: Alphabet, Amazon and Meta all show negative free cash flow as they raise capex, so AI infrastructure spending is pressing on the cash flow of the core businesses funding it.