Reuters: Major Tech Giants' AI Investments Squeeze Cash Flow, Capital Expenditures May Exceed Free Cash Flow by 2027

According to ChainCatcher, citing Reuters analysis of LSEG consensus forecast data,Microsoft, Alphabet, Amazon, Meta and Oracle, five major US hyperscale companies, are facing cash flow pressures from AI investments. On the current trajectory, by2027, the combined capital expenditure of these companies is expected to exceed their generated free cash flow. Data shows that their annual operating cash flow in 2027 will increase by about$340 billioncompared to 2025, but capital expenditure is expected to increase by about$534 billion, which means for every additional$1in cash flow, an extra investment of about$1.57is required.